01 - Whisk together flour, baking powder, baking soda, and salt in a medium bowl. Set aside for later use.
02 - Beat softened butter and granulated sugar in a large mixing bowl until light and fluffy, approximately 2-3 minutes.
03 - Add egg and vanilla extract to the butter mixture. Beat until thoroughly incorporated.
04 - Mix in sour cream until fully combined with the wet mixture.
05 - Gradually add dry ingredients to wet mixture, mixing until soft dough forms. Avoid overmixing.
06 - Divide dough in half, flatten into discs, wrap in plastic wrap, and refrigerate for at least 1 hour.
07 - Preheat oven to 350°F. Line two baking sheets with parchment paper.
08 - On lightly floured surface, roll dough to 1/4-inch thickness. Cut 2.5-inch circles and place 2 inches apart on prepared baking sheets.
09 - Bake for 9-11 minutes until edges are set but not browned. Cool completely on wire rack.
10 - Beat softened butter until creamy. Gradually add sifted powdered sugar, beating well after each addition. Add vanilla, salt, and cream. Beat on high speed for 2-3 minutes until fluffy. Add food coloring if desired.
11 - Once completely cooled, spread or pipe frosting generously onto cookies. Add sprinkles if desired.