In a large mixing bowl (or your stand mixer), beat together the butter and sugar until light in color and fluffy.
Add eggs, one at a time with the mixer running on low. Turn the mixer up to medium and beat until well combined for about 2-3 minutes. Add extracts as the mixer is still going
Over a separate large mixing bowl, sift the flour, baking powder, and salt together. Whisk to combine.
Slowly add the dry ingredients to the butter mixture, beating on low speed until just combined. While this dough is forgivable, use caution to not overmix the dough. This will help keep the cookies soft and tender.
Place about 1 cup of the dough mixture onto parchment paper or wax paper that has been dusted with powdered sugar and cover with an additional sheet of parchment paper. Using a rolling pin, roll out to ¼ inch thickness and place in a sealed storage bag or large covered container. Repeat until all dough has been rolled out.
Place the rolled dough into the refrigerator, sealed well, for 12 hours or overnight. (If you are not planning on using all the dough right away, freeze it in well-sealed storage bags in the freezer.)
When ready to bake the cut out cookies, preheat the oven to 400℉
Remove the dough sheets from the refrigerator. Lightly dust cookie cutters with powdered sugar and cut the dough as desired. Place the cut-out cookies onto a cookie sheet, spaced about 2 inches apart. If adding sprinkles, do so now.
Bake for 6-7 minutes. You want the cookies to look JUST set, not at all browned.
Remove the cookies from the oven, place the cookie sheet on a cooling rack, and allow the cookies to sit on the baking sheet for 2-3 minutes to finish setting up. After 2-3 minutes, gently remove the cookies from the tray and allow them to cool fully before icing.
Re-roll scraps up to 3 times to cut out more cookies to bake. If needed, refrigerate the dough in between baking if the dough becomes warm and squishy. This will help the cookies hold their shape.
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Notes
Butter & Eggs: For best results, be sure to use room-temperature eggs and butter. Storage: Store baked and cooled sugar cookies in an airtight container for 5 days. If iced, store the cookies in the refrigerator. To Freeze Baked Cut-Out Cookies, allow cookies to cool fully and then place them into a sturdy freezer-safe container and freeze them for 2 months. To Freeze Sugar Cookie Dough, Place dough on parchment paper in flattened rounds. Place the dough into a freezer-safe bag and tightly seal. Freeze for up to 3 months. Thaw the dough out in the fridge the night before baking. And then roll out and bake as directed.