Mix together 3/4 cup butter and 1/2 cup cream cheese at a medium speed with a whisk attachment or hand mixer until smooth.
Next, mix in 1 1/2 cups granulated sugar at a medium-high speed for a couple minutes, until the mixture becomes lighter in color.
Add in 1 egg, 2 tsp vanilla bean paste or vanilla extract and 1 tsp almond extract. Mix on a low speed until incorporated.
In a separate bowl, sift together 3 cups flour, 1 Tbsp cornstarch, 1/2 tsp baking powder and 1/2 tsp salt.
Gradually mix the flour mixture into the butter mixture on a low speed, until it is JUST incorporated. I like to do this in a couple installments and scrape the sides of the bowl between additions.
At this point the dough will still be pretty sticky. Divide the dough in half and wrap each piece of dough in a piece of plastic wrap.
Chill in the fridge for about 2 hours or the freezer for 30 minutes. You can also chill the dough overnight.
Preheat your oven to 350 F / 175 C about 30 minutes before you plan to roll out the dough.
Generously dust the surface you plan to roll the cookies out on with additional flour. Take one ball of dough out of the fridge or freezer, leaving the other to continue to chill.
Sprinkle some more flour on top of your dough ball and on your rolling pin.
Roll the chilled dough to be 1/3 inch thick and cut out your shapes with a flour dusted cookie cutter.
Use a kitchen brush to gently brush off any excess flour and place onto a parchment lined baking sheet or silicone mat.
Chill the cut out cookies one more time in the fridge for 15 minutes or the freezer for 10 minutes to help them keep their shape better.
Bake for 10-13 minutes on the top wrack of your oven (time varies based on the size and shape of the cookies). Keep a close eye on these and be sure to pull them out before the edges start to brown.
Let the baked cookies cool on the pan for about 10 minutes, then transfer to a wire rack to finish cooling.
While the first batch bakes and cools, knead together the cookie dough scraps, and rewrap them in plastic wrap. Pop them back in the fridge to chill.
Pull out your 2nd chilled ball of dough, and repeat steps 9-15. Then repeat with the chilled dough scraps.