In a large bowl, cream together 1 cup (222g) softened margarine and 1 1/4 cup (137g) powdered sugar until light and fluffy.

Beat in the egg, vanilla extract, and butter extract until well combined.

In a separate bowl, whisk together the cake flour, baking powder, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing until just combined and a soft dough forms. Do not overmix.

Divide the dough in half, wrap each half in plastic wrap, and refrigerate for at least 30 minutes, or up to 2 hours.

On a lightly floured surface, roll out one half of the dough to about 1/4-inch thickness. Use a round cookie cutter to cut out cookies.

Place cookies on a baking sheet lined with parchment paper. Bake in a preheated oven at 375°F (190°C) for 7-9 minutes, or until edges are very lightly golden.

Let cool on the baking sheet for a few minutes before transferring to a wire rack to cool completely. For the frosting, cream together 1/4 cup (55g) softened margarine and 1 1/2 cups (165g) powdered sugar until smooth. Add a splash of milk or water if needed to reach desired consistency. Beat in a touch more vanilla extract if desired. Frost the cooled cookies and decorate with sprinkles if desired.