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Note the dough requires a minimum 2 hours of refrigeration time.
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For the cookies:
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In the bowl of a stand mixer, fitted with paddle attachment beat butter for 3 minutes until creamy. Add sugar and vanilla and beat until incorporated. Add egg and mix until combined.
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In a large bowl sift flour and add baking powder and salt. Gradually add flour to wet ingredients. Mix until flour is incorporated.
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Form a ball from the dough, wrap in plastic wrap and refrigerate for 2 hours or overnight.
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Take dough out of the fridge when ready to make the cookies. Separate dough in half and form each half into a ball. Roll each half between parchment paper, until dough is 1/4-inch thick. Using an egg shaped cookie cutter, cut out cookies. Try to cut as many as you can. You can of course re-roll the dough, but every time you do, tiny air pockets may form and cookies will not be as smooth.
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Preheat oven to 350 F. Transfer cookies to a baking sheet lined with a Silpat or parchment paper. Bake cookies for 10-11 minutes, until they are barely beginning to turn golden. Remove from oven. Let cookies cool on baking sheet for 10 minutes, then transfer to a cooling rack to cool completely.
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For the royal icing:
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In the bowl of a stand mixer, fitted with paddle attachment mix together powdered sugar, meringue powder, vanilla and water. Beat for around 8 minutes on medium speed, until thick and shiny. Color icing in colors of your choice. Use gel (paste) coloring and start by adding just a little at a time. Thin icing with water if needed, until you reach piping consistency.
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Fill piping bags with the different frosting colors. Fit each bag with a Wilton # 2 tip. Cover cookies with royal icing in the desired color. Let the icing set for at least 8 hours. Decorate cookies with colors of your choice. I used the same piping bags as the ones for doing the background. Let icing set after each step.
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Keep cookies in an airtight container at room temperature up to 10 days, or package each cookie individually.
