Sift together flour, baking powder and salt, set aside.
In a mixer, cream butter and sugar. Add egg, vanilla, and milk.
Add sifted dry ingredients gradually until dough is stiff enough to handle. Form into a ball, wrap in plastic. Chill at least 1 hour
Preheat oven to 350 degrees. Remove dough from the fridge, cut dough in half and place one half back into the fridge.
Sprinkle flour onto counter top. Use a rolling pin to roll dough 1/4 inch thick, cut with cookie cutters. Place cut cookies on un-greased cookie sheet. Form leftover dough into a ball again and roll again, cut with cookie cutters, until all dough is used. Repeat with remaining dough in the refrgerator.
Bake for 10 minutes.
For Frosting:
Use a mixer to blend butter and sugar till smooth, add milk and continue mixing. Separate into small bowls and add food coloring if desired. Frost cookies.
Notes
Of course this recipe can be used for any holiday. Just use whatever shape cookie cutters that best fit the holiday!