Preheat oven to 350 degrees F.
In a large bowl, mix flour, baking powder, and salt together and set aside.
Using an electric mixer, cream butter, sugar and vanilla together; add egg and beat until light and fluffy. Stir in milk.
Slowly add dry ingredients into butter mixture and mix until well combined.
Divide dough in half and chill in refrigerator for at least 1 hour.
Remove dough from refrigerator and roll out on a floured surface to about 1/8 inch thickness and cut with your favorite cookie cutter shapes.
Bake for 8 minutes or until edges are lightly golden brown.