Step 1

In a large bowl, cream butter and confectioners' sugar until light and fluffy, 5-7 minutes. Beat in the egg and extracts. Combine the flour, baking soda and cream of tartar; gradually add to creamed mixture and mix well.

Step 2

Divide dough into thirds. Shape each into a ball, then flatten into a disk. Wrap in waxed paper and chill in the freezer for 15 minutes or until easy to handle.

Step 3

For Santas: On a lightly floured surface, roll 1 portion of dough into a 10-in. circle. Turn a pie plate upside down over circle and cut around the edge with a knife; reserve scraps. Cut into 8 wedges.

Step 4

Place wedges 2 in. apart on ungreased baking sheets. Fold the tip of each wedge down. Tuck a scrap piece of dough (about a 1/2-in. ball) under the upper part of fold.

Step 5

For elves: Roll another portion of dough into a 10-in. circle. Cut in half; cut 1 half into 4 wedges and the other half into 8 wedges. Repeat forming Santas with the large wedges. Transfer small wedges to a baking sheet; fold tips down, forming hats.

Step 6

Roll the remaining portion of dough into a 10-in. circle. Cut into 16 wedges. Transfer to baking sheets; fold tips down.

Step 7

Bake at 350° for 10-13 minutes or until edges are lightly browned. Cool for 2 minutes. Remove from pans to wire racks to cool completely.

Step 8

To decorate: In a large bowl, combine the confectioners' sugar, meringue powder and cream of tartar; add water. Beat on low speed just until combined. Beat on high for 4-5 minutes or until stiff peaks form.

Step 9

Tint icing with colors of your choice. (Keep unused icing covered at all times with a damp cloth. If necessary, beat again on high speed to restore texture.) Working with one cookie at a time, decorate with icing, attach a marshmallow to the tip of hat and finish with sprinkles and dragees as desired. Let stand until set. Store in an airtight container.