In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.

In a large bowl, using a handheld or stand mixer, beat the softened butter and granulated sugar together on medium-high speed until light and fluffy, about 3 minutes.

Add the egg and vanilla extract and beat on high speed until well combined, scraping down the sides of the bowl as needed.

Reduce the mixer speed to low and gradually add the dry ingredient mixture to the wet ingredients. Mix until just combined. Do not overmix.

Divide the dough in half, flatten each half into a 1-inch thick disk, and wrap tightly in plastic wrap. Chill in the refrigerator for at least 1 hour and up to 2 days.

Preheat oven to 350°F (177°C). Line two large baking sheets with parchment paper. On a lightly floured surface, roll out one disk of dough until it is about 1/4-inch thick. Use cookie cutters to cut into desired shapes.

Place cookies 2 inches apart on the prepared baking sheets. Bake for 9-11 minutes, or until the edges are very lightly browned. Allow to cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.

Once completely cooled, decorate with your favorite icing and sprinkles. Store in an airtight container.