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

In a large mixing bowl, cream the butter and sugar until light and fluffy (about 2–3 minutes).

Beat in the egg, vanilla extract, and almond extract until fully combined.

Gradually mix in the dry ingredients, alternating with milk, until a soft dough forms.

Divide the dough into two discs and wrap in plastic wrap. Chill in the refrigerator for at least 1 hour (or up to overnight).

Lightly flour your work surface and rolling pin. Roll one disc of dough to about ¼-inch thickness.

Use cookie cutters to cut shapes and transfer them to a lined baking sheet. Repeat with remaining dough.

Preheat the oven to 350°F (175°C). Bake cookies for 8–10 minutes, until edges are just starting to turn golden.

Remove from oven and let cookies sit on the tray for 2 minutes before transferring to a cooling rack.

In a small bowl, whisk together powdered sugar, milk, and vanilla extract until smooth.

Divide icing into separate bowls if using different colors, then add food coloring as desired. Keep icing covered with a damp cloth when not in use.

Use a spoon, piping bag, or squeeze bottle to decorate your cookies with icing. Add sprinkles while icing is still wet.

Let the cookies set for 1–2 hours before stacking or storing.