Preheat oven to 350°F (or 180°C). Line baking sheets with parchment paper or nonstick silicone baking mats. Set aside.
In a large bowl, whisk together flour, baking powder, and salt. Set aside.
In the bowl of a stand mixer fitted with a paddle attachment, cream butter until smooth. With the mixer running low, slowly pour in sugar. Add in extracts. Scrape down sides of bowl to ensure thorough mixing.
Add egg. Continue to mix on low to medium speed until well combined.
Add flour mixture in two additions. Mix on low speed until dough forms. Divide dough into two equal parts.
Work with one piece of dough at a time. On a lightly floured work surface, roll dough to a thickness of about 1/4-inch. Use a well floured cookie cutter to stamp out desired cookie shapes. Gather dough scraps and re-roll dough as necessary.
Place cut cookies on the prepared baking sheet, spacing them about 2-inches apart. Bake for 8 minutes* until the edges of the cookies have set. Cool cookies on baking sheet for 3-5 minutes to firm up. Transfer warm cookies to the wire rack and cool to room temperature.