Preheat your oven to 350°F (175°C) and prepare a baking sheet by lining it with parchment paper.

Cream the softened butter in a large bowl until light and fluffy, about 2-3 minutes. Add the vanilla extract.

Mix in the powdered sugar gradually, followed by the all-purpose flour, until well combined.

Add milk, one tablespoon at a time, until the dough holds together well.

Roll out the dough to about ¼ inch thick and cut desired shapes with cookie cutters.

Chill the cut cookies in the freezer for 15 minutes.

Bake the cookies for 12-15 minutes, or until the bottoms turn light golden brown.

Cool the cookies completely on a wire rack before icing.

Mix the icing by combining the powdered sugar, milk, and food coloring until smooth.

Pipe the icing onto cooled cookies and add sprinkles for decoration.

Allow the icing to set before storing in an airtight container.