Cream Cheese Cutout Cookies

In large mixer bowl combine butter and cream cheese. Beat until well combined. Add sugar; beat until fluffy. Add egg, vanilla and almond extract; beat well.

In medium bowl stir together flour and baking powder. Add flour mixture to cream cheese mixture; beat until well mixed. Divide dough in half. Cover and chill in refrigerator about 1½ hours or until dough is easy to handle.

On lightly floured surface roll dough to ⅛-inch thickness. Cut with desired cookie cutters. Place on ungreased cookie sheets. Bake in 375°F oven for 8 to 10 minutes or until done. Remove to wire racks; cool.

Pipe or spread Almond Frosting on cooled cookies.

In small mixer bowl beat 2 cups sifted powdered sugar, 2 tablespoons softened butter and ¼ teaspoon almond extract until smooth. Beat in enough milk (4 to 5 teaspoons) until frosting is of piping consistency. For spreadable frosting, add a little more milk. Stir in a few drops of food coloring, if desired. Garnish with colored sugar, dragées or nuts, if desired.