Step 1: In medium bowl, whisk together flour, baking powder, and salt. Set aside.
Step 2: In large bowl, beat butter and sugar until light and fluffy, about 3 minutes.
Step 3: Add egg, vanilla, and almond extract; beat until combined.
Step 4: Gradually add flour mixture, mixing until just incorporated.
Step 5: Divide dough in half, flatten into discs, wrap in plastic, and chill for at least 2 hours.
Step 6: Preheat oven to 375°F (190°C) and line baking sheets with parchment paper.
Step 7: On floured surface, roll dough to 1/4-inch thickness and cut with cookie cutters.
Step 8: Place cookies 1 inch apart on baking sheets and bake 8-10 minutes until edges are light golden.
Step 9: Cool cookies completely on wire racks before decorating.
Step 10: For icing, combine powdered sugar, meringue powder, and water; beat until stiff peaks form.
Step 11: Divide icing into bowls, tint with food coloring if desired, and decorate cooled cookies.