Preheat the oven to 375°F (190°C). Line baking sheets with parchment paper.
In a medium bowl, whisk together the flour, baking soda, and baking powder. Set aside.
In a large bowl, cream together the softened butter and granulated sugar until light and fluffy, about 3 to 4 minutes.
Beat in the egg, vanilla extract, and almond extract until well combined.
Gradually add the dry ingredients to the wet ingredients, mixing until just combined.
Add milk one tablespoon at a time until the dough is soft but not sticky.
Divide the dough into two equal portions. On a lightly floured surface, roll out one portion to about 1/4 inch thickness.
Use cookie cutters to cut out desired shapes and place them 1 inch apart on the prepared baking sheets.
Repeat with the second portion of dough.
Bake in the preheated oven for 8 to 10 minutes, or until the edges are just beginning to turn golden.
Allow cookies to cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.
Decorate as desired once cooled.