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Pulse pistachios in a food processor until small crumbs form. You need ¾ cup of very finely chopped pistachios. Set aside.
Using a mixer, beat the butter for 1 minute on medium speed until smooth and creamy.
Add the powdered sugar, vanilla extract, and almond extract, then beat on medium-high speed until combined.
Add the flour, ¾ cup pistachio crumbs, and food coloring, and beat on medium-high speed until combined.
Cover the cookie dough tightly and chill in the refrigerator for 30 minutes and up to 3 days.
Preheat oven to 350°F. Line large baking sheets with parchment paper.
Roll the cookie dough into balls, about 1 tablespoon each.
Bake 14-15 minutes until edges are lightly browned. Do not overbake.
Cool cookies 5 minutes on the baking sheet, then transfer to a wire rack.
Make sure cookies are fully cool before dipping or applying icing.