Preheat oven to 350 F & line baking sheet with parchment paper.
Microwave butter until soft but not melted entirely.
In large mixing bowl, combine flour, butter, baking powder, sugar, egg, & vanilla. Knead mixture with your hands while gradually adding in ¼ cup of water as needed to help combine mixture.
Cover bowl with saran wrap & put in refrigerator for 20-30 minutes.
Remove bowl. Line baking sheet with parchment paper. Take one scoop of cookie dough & roll into ball. Flatten the ball into rectangular shape & place on baking sheet. Place cookie cutter over dough & remove excess. Repeat with additional dough placing cookies at least 3 inches apart.
Bake 10-15 minutes. Let cool completely. If dough expands, feel free to place cookie cutter over the dough again once the cookies have baked. Again, remove excess.