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In a large mixing bowl, with an electric or stand mixer, beat together the butter and sugar on high until smooth and creamy - about 2 minutes.
Add the egg, egg yolk and vanilla extract and beat another 1 minute.
Add the dry ingredients: almond flour, coconut flour, baking powder and salt and mix until a soft, slightly sticky dough forms.
Divide the dough into two equal parts. Place each section of dough on a lightly floured (see note) piece of baking paper and roll out into 1/4 inch thickness. Transfer one of the roll out sections of rolled out cookie dough to a large baking sheet. Lightly dust the top of the dough with flour, then carefully place the second section of rolled out dough on top and cover with plastic wrap or foil. Place the dough in the fridge and leave to chill for at least 45 minutes and up to two days.
Once fully chilled, preheat the oven to 350°F/180°C. Line or lightly grease a couple of large baking sheets. Remove the top section of dough from the bottom and place each section on a flat surface. Begin cutting your dough into shapes with your cookie cutters and carefully transfer to your prepared baking sheets. Leave about an inch of space in between each cookie. Re-roll and continue cutting the cookies from the leftover scrapes until all your dough is used up.
Place each tray in the oven and bake for 9-11 minutes until the edges and lightly goldened. Keep in mind that smaller cookies will bake closer to 9-10 minutes and larger cookies will bake in 10-11 minutes. Almond flour browns quickly so watch your cookies towards the end.
Enjoy your cookies as is or frost with your choice of icing or frosting. Baked cookies will keep 1-2 weeks.
Beat together the butter and sugar together until fluffy. Add the vanilla extract. If your frosting feels too thick and difficult to spread, add 1 teaspoons vanilla extract.