Cream the butter and sugar in a large bowl until light and fluffy.
Add the egg and vanilla extract to the butter mixture while beating on medium speed.
Whisk the flour and baking powder together in a separate medium container.
Combine the dry ingredients with the wet mixture slowly until a soft dough forms.
Divide the dough into two equal disks and wrap them tightly in plastic wrap.
Refrigerate the dough for at least one hour to prevent spreading.
Roll the chilled dough on a floured surface until reaching a quarter-inch thickness.
Cut your desired shapes using floured Christmas-themed cookie cutters.
Preheat your oven to 350 degrees Fahrenheit.
Place the cutouts on a parchment-lined pan spaced two inches apart.
Bake for 10 minutes or until edges are lightly golden.
Remove from oven and let cookies cool on the pan for 5 minutes before transferring to a wire rack.