Cream Cheese Sugar Cookies

1 cup butter, softened
1 8 oz. pkg cream cheese softened
1 1/2 cups sugar
1 egg
1 tsp vanilla
1/2 tsp almond extract
3 1/2 cups flour
1 tsp baking powder

In large bowl, beat butter and cream cheese until well combined. Add sugar; beat until fluffly. Add egg, vanilla, and almond extract; beat well. In small bowl, combine flour and baking powder. Add dry ingredients to cream cheese mixture; beat until well mixed. Divide dough in half and wrap each half in plastic wrap. Refrigerate about 1 1/2 hours. Roll dough out to 1/8 inch thickness and cut into shapes. Bake 375 for about 7 to 10 minutes. Cool on wire rack.
Almond Frosting:
2 cups sifted powdered sugar
2 Tbls softened butter
1/4 tsp almond extract
enough milk for right consistency (about 5 to 8 tsp