In a mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.

Beat in the egg and vanilla extract until well combined.

In another bowl, whisk together the flour, baking powder, and salt.

Gradually add the dry ingredients to the wet mixture, mixing until a dough forms.

Preheat the oven to 350°F (175°C).

Roll out the dough on a floured surface to about 1/4 inch thick.

Use a sombrero-shaped cookie cutter to cut out cookies and place them on a baking sheet.

Bake for 12-15 minutes or until the edges are lightly golden.

Allow cookies to cool completely on a wire rack.

Once cooled, use royal icing to decorate the cookies in festive colors.

Add sprinkles for extra decoration and fun.