Beat softened margarine, sugar, egg, milk, and vanilla together until the mixture is light and fluffy.

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

Gradually add the dry ingredients to the wet ingredients, mixing well until a dough forms.

Cover the dough and chill it thoroughly in the refrigerator for at least 2 hours.

Preheat oven to 375°F (190°C).

Lightly flour a clean surface.

Roll out small portions of the chilled dough at a time to about 1/4 inch thickness.

Use cookie cutters to cut out desired shapes.

Place the cut-out cookies onto a lightly greased cookie sheet.

Sprinkle the cookies with sugar.

Bake in the preheated oven for 8 minutes, or until the edges are lightly golden brown.

Remove from the oven and let the cookies cool on the baking sheet for a few minutes before transferring them to a wire rack to cool completely.