1Mix powdered sugar, butter, vanilla, almond extract and egg in large bowl. Stir in remaining ingredients except granulated sugar. Cover and refrigerate at least 2 hours.
2Heat oven to 375ºF. Lightly grease cookie sheet.
3Divide dough in half. Roll each half 1/4 inch thick on lightly floured surface. Cut into desired shapes with 2- to 2 1/2-inch cookie cutters. Sprinkle with granulated sugar. Place on cookie sheet.
4Bake 7 to 8 minutes or until edges are light brown. Remove from cookie sheet. Cool on wire rack.