Preheat the oven to 350°F (175°C).

In a mixing bowl, cream together the butter, cream cheese, granulated sugar, and powdered sugar until smooth.

Beat in the egg and almond extract until well combined.

In another bowl, whisk together the flour, baking powder, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing until a dough forms.

Roll out the dough on a floured surface and cut into desired shapes.

Place on a baking sheet and bake for 8 minutes or until lightly golden.

Allow the cookies to cool before decorating with royal icing.

For the frosting, beat together the softened butter, powdered sugar, milk, vanilla extract, and almond extract until smooth.

Decorate cooled cookies with frosting, red and pink gel, and sprinkles as desired.