Preheat the Oven: Set your oven to 400°F. Line baking sheets with parchment paper.

Cream Butter and Sugar: In a stand mixer or large bowl, beat the softened butter and granulated sugar on medium speed for 2-3 minutes, until light and fluffy.

Mix in Wet Ingredients: Add the sour cream, egg, almond extract, and vanilla extract. Beat until well combined.

Add Dry Ingredients: In a separate bowl, whisk together the baking soda, baking powder, salt, and All-Purpose Flour. Gradually add the flour mixture to the wet ingredients, one cup at a time, until the dough is soft but firm enough to roll. If the dough feels too sticky, add an extra tablespoon of flour.

Roll and Cut Dough: Lightly flour your work surface. Roll out the dough to about ¼-inch thickness. Use your favorite cookie cutters to cut out shapes, then transfer them to the prepared baking sheets.

Bake: Bake the cookies at 400°F for 6-8 minutes, or until the edges are just starting to turn a light golden brown. Avoid overbaking to keep the cookies soft. Allow the cookies to cool on the baking sheet for 5 minutes, then transfer to a wire rack to cool completely.

Beat Butter and Cream Cheese: In a mixing bowl, beat the butter and cold cream cheese on medium speed until smooth and fluffy, about 2-3 minutes.

Add Almond Extract and Sugar: Add almond extract, then gradually mix in the powdered sugar until the frosting reaches your desired sweetness and consistency. If the frosting is too thick, add milk 1 tablespoon at a time until smooth and spreadable.

Frost and Decorate: Once the cookies are fully cooled, spread or pipe the frosting on top. Decorate with sprinkles or colored sugar, if desired.