Preheat your oven to 350°F (175°C). Line a baking sheet with parchment paper and set it aside.
In a mixing bowl, cream together the granulated sugar and softened butter using an electric mixer or whisk until the mixture is light and fluffy.
Add the egg and vanilla extract to the mixture and mix until well combined.
In a separate bowl, whisk together the all-purpose flour, baking powder, and salt.
Gradually add the dry ingredients to the wet mixture, mixing until just combined to form a dough.
Lightly flour your work surface and roll out the dough to about ¼-inch thickness.
Use cookie cutters to cut the dough into your desired shapes, then place them on the prepared baking sheet.
Bake in the preheated oven for 8-10 minutes, or until the edges are lightly golden.
Remove from the oven and let the cookies cool on the baking sheet for 5 minutes before transferring them to a cooling rack.
Once cooled, decorate the cookies with icing, food coloring, and sprinkles as desired.