Beat the softened butter and sugar in a large mixing bowl until the mixture is light and fluffy.
Add the egg and vanilla extract to the butter mixture and beat at medium speed until combined.
In a separate bowl, whisk together the flour, baking powder, and salt.
Gradually add the dry ingredients to the wet ingredients until a cohesive dough forms.
Wrap the dough in plastic wrap and refrigerate for at least one hour to firm the fats.
Preheat the oven to 350 degrees Fahrenheit and line two baking sheets with parchment paper.
Roll the chilled dough on a lightly floured surface to your desired thickness.
Cut into festive shapes and place on the prepared baking sheets.
Bake for 10 minutes or until the edges are just set and lightly colored.
Cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.