In a large bowl, beat the softened butter and cream cheese together until smooth and creamy.

Add the granulated sugar and mix until light and fluffy.

Mix in the egg, vanilla extract, and almond extract until well combined.

In a separate bowl, whisk together the flour, baking powder, and kosher salt.

Gradually add the dry ingredients to the wet ingredients, mixing until a dough forms. Cover the dough and refrigerate for at least 1 hour.

Preheat the oven to 350°F. Line baking sheets with parchment paper.

Lightly flour your work surface and roll out the chilled dough to about 1/4-inch thickness.

Use cookie cutters to shape the dough, then transfer the cookies to the prepared baking sheets. Gather the scraps, re-roll the dough and repeat as necessary.

Bake for 12-13 minutes, or until the edges are just barely starting to turn light golden brown.

Let the cookies cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.

While the cookies are cooling, make the frosting. Beat the softened butter and cream cheese together until smooth. Add the vanilla extract and salt, and mix until incorporated. Gradually add the powdered sugar, starting with 1.5 cups and adding more to reach your desired consistency and sweetness.

Add food coloring to the frosting if desired. Spread or pipe the frosting onto the cooled cookies.