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1. Heat oven to 350 degree F. Line 2 cookie sheets with parchment paper.
2. Combine flour and baking powder in bowl. Beat butter and granulated sugar in mixer bowl. Beat in egg, vanilla and dry ingredients.
3. Divide dough in half. On a floured surface, roll 1 piece dough 1/4 inch thick. Cut out shapes with 2-, 3- or 4-inch cookie cutters; transfer to prepared sheets. Bake cookies 8 to 10 minutes or until edges are golden. Cool on racks. Repeat.
Make Icing::4. Combine confectioners' sugar and meringue powder in a mixer bowl. Add 6 tablespoons water. Beat 5 minutes or until thick and smooth, adding up to 1 tablespoon more water for piping consistency, if necessary.
5. Divide Icing into bowls for separate colors. (Reserve a bowl of white Icing.) Tint Icing by putting a small amount of food coloring on a toothpick and stir until well blended.