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Combine flour and baking powder in small bowl; mix well and set aside.
Beat margarine and sugar in large bowl with electric mixer until light and fluffy. Beat in eggs and almond extract. Add flour mixture, and if desired, almonds to butter mixture 1 cup at a time, mixing after each addition.
Place cookie dough on plastic wrap; shape into a disk. Refrigerate at least 1 hour.
Preheat oven to 375°F. Roll out dough about 1/8 inch thick on well-floured surface. Cut with cookie cutters, dipping cutters in flour before each use.
Place cookies on ungreased cookie sheet. Bake 9 to 11 minutes or until cookies are lightly browned around edges. Remove to wire rack; cool completely.
Combine confectioners´ sugar, water, and if desired, almond extract in medium bowl; stir until smooth. (Icing should pour easily from spoon.)
Divide icing into thirds; color one third blue, one third yellow and reserve one third white.
Spoon over cooled cookies; sprinkle as desired with colored sugars.
Makes approximately 3-1/2 dozen 3-inch cookies
*For best results, use only the stick form of margarine for baking, not spreads in stick or tubs.