Preheat your oven to 325°F (170°C) and grease baking sheets or line them with parchment paper.
In a large mixing bowl, beat the softened butter until light and fluffy.
Add the sifted confectioners’ sugar, milk, and vanilla extract; mix until well combined.
Gradually add the sifted flour, mixing until the dough is smooth and velvety.
Divide the dough into two portions and roll out one portion to about 1/4-inch thickness.
Use cookie cutters to cut out shapes and place them on the prepared baking sheets.
Bake for approximately 12 minutes until the cookies remain almost white with light golden bottoms.
Allow the cookies to cool on the baking sheets for a few minutes before transferring them to wire racks to cool completely.
Decorate with icing and sprinkles if desired.