In the bowl of a stand mixer, or in a large mixing bowl using a hand mixer, beat the butter and sugars together for 3-4 minutes until light and fluffy. While the mixer is running, slowly add in the vanilla extract, almond extract, lemon zest and milk and beat until incorporated.

Add two cups of flour, salt and baking powder to the dough and mix slowly to combine. Add the last cup of flour and mix gently until the flour is just incorporated. Be careful not to over mix. The dough will be soft.

Scoop the cookie dough onto a piece of plastic wrap and bring it together with your hands. Wrap the dough in plastic and refrigerate for at least 30 minutes, so the dough is easier to handle.

Preheat the oven to 400 degrees. Prepare a baking sheet lined with a piece of parchment paper or a silpat liner.

Dust your countertop or a large cutting board with powdered sugar. Using a rolling pin, roll the dough to an even thickness, about ⅓ to ¼ inch thick. Use cookie cutters to cut the dough into shapes. Use a spatula to place the cookies onto your prepared baking sheet.

Bake the cookies for about 7 to 7½ minutes at 400 degrees. The cookies should be pale or ever-so-slightly golden on the bottoms, so they stay soft. Smaller cookies may take an even shorter amount of time, 5-6 minutes.

Cool the cookies completely on a wire rack before icing or decorating.