Preheat oven to 350°F (175°C) and line baking sheets with parchment paper.
Cream softened butter and granulated sugar together until light and fluffy.
Beat in the egg and vanilla extract until fully incorporated.
In a separate bowl, whisk flour, baking powder, and salt.
Gradually add the dry ingredients to the butter mixture, mixing until a stiff dough forms.
Roll dough to 1/4-inch thickness on a lightly floured surface and cut into Easter shapes like eggs, bunnies, and chicks.
Bake for 8 to 10 minutes until the edges are just set but not browned; transfer to a wire rack to cool completely.
To make royal icing, combine powdered sugar, meringue powder, and water in a stand mixer bowl.
Beat on medium-high speed for 7-10 minutes until the icing forms stiff, glossy peaks.
Divide icing into separate bowls and tint with gel food coloring; adjust consistency with water for outlining or flooding.
Pipe outlines onto cooled cookies, then flood the centers and allow to dry for at least 6 hours.