In a large mixing bowl, cream together the softened butter, granulated sugar, and powdered sugar until light and fluffy, about 3-5 minutes.

Add in the egg yolk, vanilla extract, almond extract, and salt, mixing thoroughly until well incorporated.

Gradually add the all-purpose flour into the butter mixture, mixing on low speed until a soft dough forms. If using chocolate chips, fold them in now.

Wrap the dough in plastic wrap and refrigerate for at least 1 hour.

Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper.

Remove chilled dough from the fridge, roll into 1-inch balls, and place them 2 inches apart on baking sheets.

Flatten each ball slightly and sprinkle with festive sugar or colored sprinkles if desired.

Bake in the preheated oven for 10-12 minutes until edges are lightly golden.

Cool on cookie sheets for 5 minutes before transferring to wire racks to cool completely.