1 c. butter
1 c. sugar
1 1/2 tsp. vanilla
1 egg
1 tsp. water
3 c. flour
1 1/2 tsp. baking powder
1/4 tsp. salt

Cream butter, sugar and vanilla until smooth. Add egg and water, beat until light and fluffy. Combine flour, baking powder and salt. Blend into creamed mixture. Divide dough into 4 balls, wrap and chill approximately 4 hours. Roll dough on lightly floured surface. Bake on greased cookie sheet at 375 degrees for 4 to 5 minutes. Either use sprinkles before baking or icing after.

ICING:

2 tbsp. softened butter
1 1/2 tsp. vanilla
Powdered sugar
1 tbsp. water (add enough to make icing smooth)

Add food coloring after icing is blended. Add all ingredients and beat with mixer.