Cream butter and sugar in a large bowl with an electric or hand mixer until light and fluffy. Beat in egg, vanilla extract, and almond extract.
In a separate bowl, mix together the flour, baking powder, and salt. Add the dry ingredients to the butter mixture 1 cup at a time, mixing in between each cup.
Divide the batter in two balls and set on a floured surface. Roll out each ball with a rolling pin to make each section about 12 inches in diameter and ? inch thick.
Dip cookie cutter A in flour before carefully cutting out each shape.
Bake the cookies on an ungreased baking sheet for 8-11 minutes or until the cookies are lightly browned.
Cool cookies on a cooling rack and cool completely.
Prepare Royal Icing. Beat powdered sugar, water, and meringue powder together until peaks form. This usually takes about 7-10 minutes on a low speed using an electric stand mixer, or 10-12 minutes at high speed with a hand-held mixer.
Let icing sit for 15 minutes to an hour to allow air bubbles to rise.
Reserve 1 cup of stiff royal icing to use later for decorating and thin the remaining icing to flooding consistency.
Ice Cookies. Place the cookies on a cooling grid over a cookies sheet. Using a spatula, ice each cookie then immediately sprinkle with sparkling sugars.
Decorate Cookies. Use regular chips for eyes and buttons, mini chocolate chips for mouth.