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In a large mixing bowl, beat butter with an electric mixer on medium to high speed for 30 seconds. Add sugar, baking powder and salt. Beat until combined, scraping sides of bowl occasionally. Beat in eggs, milk, vanilla and almond extract until combined. Beat in ground almonds and as much of the flour as you can with the mixer. Using a wooden spoon, stir in any remaining flour. Divide dough in half. Cover and chill dough for about 2 hours or until easy to handle.
Preheat oven to 350°F. On a lightly floured surface, roll half the dough at a time to 1/8-inch thickness. Using assorted tree-shape cookie cutters, cut out dough. Place cutouts 1 inch apart on ungreased cookie sheets.
Bake for 7 to 9 minutes or until edges are light brown. Transfer cookies to a wire rack and let cool. Decorate as desired with icing and nonpareils or decorating sugars.