Preheat oven to 400°
In the large bowl with a mixer, cream together butter and powdered sugar, and mix until the butter is light in color and well blended. Add in the egg, and continue to mix on medium until it begins to blend.
Add in the extract you'll be using, the flour, and the baking powder, mix on medium to combine, then turn the mixer to a little higher so the dough beats smooth, and when it pulls away from the sides of the bowl, turn the mixer off.
Divide the cookie dough into the portions you'll need for each color.
Add a few drops of color into each position you'll color (feel free to leave some cream, or add white food coloring if you'd like it white.
Blend the colored cookie dough in any way you'd prefer, rolling out each layer thin, or roll the dough into balls and push them together.
Roll the cookie dough to 1/4" thick, and use flour on the cookie cutter so it won't stick to the cookie dough. Using a small spatula to lift the cookies onto parchment lined baking sheets. Don't overcrowd the pan. Each cookie should have 2 inches between each cookie as well as the sides of the pan so they bake evenly.
Bake cookies at 400° for 7-8 minutes. Cookies should be firm, but not brown. Allow cookies to cool completely before moving them.