Cream together margarine, sugar, and vanilla until thoroughly combined.

Add egg and beat until the mixture is light and fluffy.

Stir in milk.

Gradually add flour and baking powder, blending into the creamed mixture until just combined.

Divide the dough in half.

Wrap each half separately and chill in the refrigerator for 1 hour.

Preheat oven to 375°F (190°C).

Lightly flour a clean surface.

Roll out one portion of the chilled dough to a thickness of 1/8 to 1/4 inch.

Use cookie cutters to cut the dough into desired shapes.

Place the cut cookies onto a greased cookie sheet.

Bake in the preheated oven for approximately 6 to 8 minutes, or until the edges are lightly golden.

Remove from the oven and allow the cookies to cool slightly on the baking sheet before transferring them to a wire rack to cool completely.

Repeat with the remaining dough.