Preheat your oven to 350°F (175°C). This ensures that your cookies bake evenly and achieve that perfect golden edge.
In a mixing bowl, combine the softened butter and powdered sugar. Using a hand mixer or stand mixer, beat the mixture on medium speed until it becomes light and fluffy, about 2-3 minutes.
Pour in the vanilla extract and mix until fully combined.
Gradually add the all-purpose flour to the butter mixture. Mix on low speed until the dough begins to come together. Be careful not to overmix.
Turn the dough out onto a lightly floured surface. Gently knead the dough a few times until smooth. Flatten into a disk, wrap in plastic wrap, and refrigerate for at least 30 minutes.
Once chilled, roll the dough out on a floured surface to about 1/4-inch thickness. Cut into desired shapes using cookie cutters or a knife.
Place cut cookies onto a parchment-lined baking sheet, leaving space between each. Bake for 12-15 minutes or until edges are lightly golden.
Remove from oven and let cool on the baking sheet for a few minutes. Transfer to a cooling rack to cool completely. Optionally, sprinkle with extra powdered sugar before serving.