Line a baking sheet with parchment paper or silicone baking mat.
In a medium mixing bowl, whisk together flour, baking soda and salt.
In a large mixing bowl, beat butter with electric hand mixer for 30 seconds. Add sugar ½ cup at a time and cream for 3 minutes.
Add egg and both extracts to butter mixture and mix until incorporated.
Add dry ingredients, in 3 parts, to butter mixture and mix until incorporated.
Scoop the dough with a medium size cookie scoop (1 and ½ tablespoon size) and roll in your hands into a smooth ball. Place cookie balls on a prepared baking sheet. If desired, press gently with the bottom of a glass (see note).
Bake cookies for 8 to 10 minutes (see note).
Cool for 3 to 4 minutes, then transfer onto a cooling rack. Cool completely before frosting.
To make frosting: in a medium mixing bowl, beat butter and cream cheese until smooth. Add vanilla and mix well. Add powdered sugar ½ cup at a time and beat for 2 to 3 minutes. You don't have to use all 2 cups, just until you are happy with the texture.
Frost completely cooled cookies and decorate with sprinkles OR enjoy plain.
Notes
Baking time for these cookies is between 8 to 10 minutes. Every oven is different so check the cookies at 8 minutes and if needed add one minute at a time. For me the magic number was exactly 9 minutes.
To properly measure out flour: stir the flour a few times in the container you keep it in, then spoon into measuring cup and level out with knife.
Please note that the butter should be really soft, not just room temperature to touch. It should be so soft, that you need a knife to scrape it off the wrapper. It will ensure proper creaming with sugar.
I use 1 and ½ cups of powdered sugar in my frosting but you can use as much as 2 cups, just until you reached the desired texture.
You can roll the dough balls in white granulated sugar before placing on baking sheet. My favorite frosting for cookies is made with cream cheese and not an overwhelming amount of powdered sugar, just enough to make the frosting spreadable.
Please note, that the nutrition value can vary depending on what product you use. The information below is an estimate.