Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a medium bowl, whisk together the flour, baking powder, and salt, then set the mixture aside.

In a larger bowl, beat the softened butter with the granulated sugar until it achieves a light and fluffy texture, about 2-3 minutes.

Add the egg, vanilla extract, and almond extract (if using) to the mixture and continue beating until fully combined.

Gradually fold in the dry ingredients until the dough comes together. Chill in the fridge for 20-30 minutes if it's overly sticky.

Lightly flour a surface and roll the dough to about 1/4-inch thickness.

Use cookie cutters to create shapes reminiscent of gift boxes and place them on your prepared baking sheets.

Bake for 8-10 minutes, watching closely until the edges turn a light golden brown. Transfer to a wire rack to cool completely.

While the cookies cool, prepare the icing by mixing the powdered sugar, milk, and vanilla until smooth.

Add drops of food coloring to create festive icing shades.

Once cooled, decorate the cookies with colorful icing and sprinkles to achieve the gift box appearance.