Mix powdered sugar, butter, vanilla, almond extract, and egg in large bowl. Stir in remaining ingredients except granulated sugar. Cover and refrigerate at least two hours.
Heat oven to 375°. Grease cookie sheet lightly with shortening.
Divide dough in half. Roll each half ¼ inch thick on lightly floured surface. Cut into desired shapes with 2- to 2-1/2-inch cookie cutters. Place on cookie sheet.
Bake 7 to 8 minutes or until edges are light brown. Remove from cookie sheet. Cool on wire rack.
When cooled fully, decorate with Vanilla Buttercream Frosting.
TO MAKE FROSTING:
Mix powdered sugar and margarine in medium bowl. Stir in vanilla and milk.
Beat until smooth and spreadable.