Preheat oven to 350°F and line baking sheets with parchment paper.

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

In another bowl, beat butter and sugar until light and fluffy.

Add egg and vanilla, mix until combined.

Gradually stir in dry ingredients until a soft dough forms.

Roll out dough on a lightly floured surface to about ¼ inch thick.

Cut out circles with a round cutter and place on baking sheets.

Bake 8–10 minutes or until edges are lightly golden.

Cool completely before decorating.

Whisk together powdered sugar, milk, and vanilla until smooth. Add more milk a few drops at a time if it’s too thick. For a glossy finish, stir in a bit of corn syrup.

Spread icing over each cookie.

Press shredded coconut on the bottom half for Santa’s beard.

Add two mini chocolate chips for eyes.

Press a red M&M in the center for the nose.

Sprinkle red sugar across the top for the hat.

Stick a mini marshmallow on one side of the hat for the pompom.

Let the icing set before stacking or storing.