Preheat oven to 350°F (175°C) and line baking sheets with parchment paper.
In a large bowl, cream softened butter and granulated sugar until light and fluffy.
Beat in the egg, vanilla extract, and almond extract if using.
In another bowl, whisk together flour, baking powder, baking soda, and salt.
Gradually add dry ingredients to the butter mixture, alternating with sour cream. Mix until just combined — don’t overmix.
Scoop tablespoon-sized portions of dough and roll into balls. Place on prepared baking sheets about 2 inches apart.
Bake for 8–10 minutes, until the edges are just set but the centers remain soft. Let cool on the sheet for 5 minutes before transferring to a wire rack.
For the icing: whisk powdered sugar, milk, and vanilla extract until smooth. Adjust milk as needed for spreadable consistency.
Divide icing into bowls, add food coloring if desired, and spread or drizzle over cooled cookies. Top with sprinkles or edible decorations.
Let icing set before serving and enjoy these soft, festive cookies!
