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Cream Cheese Cutout Cookies

1 cup butter, softened
8 ounces cream cheese, softened
1 cup granulated sugar
1 egg
1 teaspoon vanilla extract
Dash almond extract
3 1/2 cups all-purpose flour
1 teaspoon baking powder

In a bowl, blend butter and cream cheese thoroughly. Add sugar, and beat until fluffy. Add egg extracts; blend well.

Mix together flour and baking powder. Add to cream cheese mixture; mix in until well blended. Divide dough in half and wrap tightly. Refrigerate for 1 hour.

Roll dough out. Cut out into desired shapes and bake on a greased cookie sheet for 8 to 10 minutes at 375 degrees F. Cool on wire racks.