Cream together softened butter and sugar in a mixing bowl until light and fluffy.

Beat in the egg and vanilla extract.

In a separate bowl, whisk together flour, baking powder, baking soda, and salt.

Gradually add the dry ingredients to the wet ingredients, alternating with the milk, until just combined.

Cover the dough and refrigerate for 15 to 30 minutes.

Preheat oven to 350°F (180°C).

On a lightly floured surface, roll out the dough to 1/8 inch thickness.

Cut out cookies using desired cookie cutters.

Place the cookies 2 inches apart on a greased baking sheet.

Bake for 10 minutes, or until the edges are lightly browned.

Let cool on the baking sheet for a few minutes before transferring to a wire rack to cool completely.

Dust with icing sugar or decorate as desired.