In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.
Add the egg and vanilla extract to the butter mixture, beating well until fully combined.
In a separate bowl, whisk together the flour, baking powder, and salt.
Gradually add the dry ingredients to the butter mixture, mixing until a soft dough forms. If the dough feels too sticky, add a little more flour, one tablespoon at a time, until it reaches a workable consistency.
Divide the dough into two equal portions and shape each portion into a disk. Wrap them tightly in plastic wrap and refrigerate for at least 1 hour or until firm.
Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper.
On a lightly floured surface, roll out one disk of dough to a thickness of about 1/4 inch. Use your favorite cookie cutters to cut out shapes and carefully transfer them to the prepared baking sheets, leaving a small space between each cookie.
Gather the scraps, reroll the dough, and continue cutting out cookies until all the dough has been used.
Bake the cookies in the preheated oven for 8-10 minutes, or until the edges are lightly golden.
Remove from the oven and let the cookies cool on the baking sheets for a few minutes before transferring them to a wire rack to cool completely.
Once cooled, it's time to unleash your creativity! Decorate the cookies with colorful icing, sprinkles, or any other desired decorations. Allow the icing to set before storing or serving the cookies.