Preheat the oven to 350°F (175°C) and line a baking sheet with parchment paper.

In a mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.

Beat in the eggs one at a time, then add the almond extract and mix well.

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

Gradually add the dry ingredients to the wet mixture, mixing until just combined. If using, fold in the chopped almonds at this stage.

On a lightly floured surface, roll out the dough to about ¼ inch thick. Use a cookie cutter to cut out desired shapes or simply cut into squares.

Place the cookies on the prepared baking sheet and bake in the preheated oven for 12-15 minutes, until lightly golden.

Once baked, remove the cookies from the oven and allow them to cool on a cooling rack.

While the cookies are cooling, prepare the icing by mixing powdered sugar and milk until smooth. Adjust the consistency as needed by adding more powdered sugar or milk.

Drizzle or spread the icing over the cooled cookies and add sprinkles for decoration if desired.

Allow the icing to set before serving.