Whisk together flour, baking powder, and salt in a medium bowl.

In a large bowl, cream together softened butter and granulated sugar until light and fluffy.

Beat in eggs one at a time, then stir in vanilla extract.

Gradually add the dry ingredients to the wet ingredients, alternating with the milk, mixing until just combined.

Divide dough in half, flatten into discs, wrap in plastic wrap, and chill for at least 1 hour.

Preheat oven to 350°F (175°C). Line baking sheets with parchment paper.

On a lightly floured surface, roll out chilled dough to 1/4-inch thickness.

Cut out desired Christmas shapes using cookie cutters.

Place cookies on prepared baking sheets, about 1 inch apart.

Bake for 8-10 minutes, or until edges are lightly golden.

Let cookies cool on baking sheets for 2 minutes before transferring to a wire rack to cool completely.

Decorate with icing and sprinkles once fully cooled.