In a mixing bowl, whisk together flour, baking powder, and salt. Set aside. In another bowl, beat butter and sugar together until creamy. Add the egg and vanilla extract, mixing until combined. Gradually add the dry ingredients to the wet ingredients, mixing until a dough forms.

Divide the dough in half, flatten into disks, and wrap in plastic wrap. Chill for at least 1 hour.

Preheat the oven to 350°F. Roll out the dough on a floured surface to about 1/4-inch thickness. Cut into desired shapes with cookie cutters.

Transfer the cookies to a baking sheet lined with parchment paper. Bake for 8-10 minutes, or until edges are lightly golden. Let cool completely on a wire rack.

In a large bowl, combine powdered sugar, meringue powder, and water. Beat with an electric mixer on low speed until smooth. Divide icing into separate bowls and add food coloring as desired.

Transfer colored icing to piping bags with small tips. Decorate cookies as desired. Allow icing to set completely before serving.

Arrange cookies on a platter or in a decorative jar for serving at your New Year celebration.

Place cookies in an airtight container and store at room temperature for up to one week.