In a large mixer bowl, combine butter and cream cheese. Beat until well combined.
Add sugar; beat until fluffy.
Add egg, vanilla, and almond extract and beat well.
In a medium bowl, stir together flour and baking powder.
Add flour mixture to cream cheese mixture; beat until well mixed.
Divide dough in half. Cover and chill in the refrigerator for about 1.5 hours or until dough is easy to handle.
Preheat the oven to 375 degrees.
On a lightly floured surface, roll dough to 1/8 inch thickness. Cut with desired cookie cutters and place on an ungreased cookie sheet.
Bake in a 375 degree oven for about 8-10 minutes or until done.
Remove onto wired racks and cool.