In a bowl, beat butter, sugar, vanilla, and egg until smooth.
Add sifted flour, baking powder and milk. Mix with a wooden spoon until well combined.
Knead the mixture lightly until it all comes together like a dough, and cover with plastic wrap and refrigerate for half an hour.
Preheat oven to 180 degrees, and line baking trays with baking paper.
Remove mixture from fridge and roll out between two sheets of baking paper, until its about half-a-centimetre thick. Use cookie sutters in various shapes to cut out the dough.
Place on prepared trays and bake for 20 mins or until lightly golden. Allow to cool on wire racks.
In a small bowl, combine icing sugar with water until the paste is smooth and not too runny, then add a couple of drops of colouring of your choice.
Using a spatula, spread the shapes with the icing.
This recipe will make about 32 biscuits, depending on the size of your cutters.
