In a large bowl, whisk together flour, baking soda, baking powder, and salt. Set aside.

In another large bowl, cream together the softened butter and sugar until light and fluffy. Beat in the egg, vanilla extract, and almond extract (if using). Gradually add the dry ingredients to the butter mixture, alternating with the milk, mixing until just combined.

Cover the dough with plastic wrap and refrigerate for at least 1 hour. This helps the dough firm up and enhances the cookie’s texture.

Preheat the oven to 350°F (175°C). Line a baking sheet with parchment paper. Roll out the dough on a lightly floured surface to about ¼-inch thickness. Use your favorite Christmas-themed cookie cutters to cut out shapes and place them on the prepared baking sheet.

Bake for 8-10 minutes, or until the edges just start to turn golden. Remove the cookies from the oven and let them cool on the baking sheet for 5 minutes before transferring them to a wire rack to cool completely.

In a medium bowl, whisk together powdered sugar, milk, and vanilla extract until smooth. If desired, divide the icing into separate bowls and add food coloring to each. Use the icing to decorate the cooled cookies and add Christmas sprinkles before the icing sets.