Mix together flour, baking powder and salt in medium-size bowl.

Beat butter and sugar on medium-high in bowl 3 minutes, until smooth. Beat in egg and extracts.

On low, beat flour mixture and milk into butter mixture just until combined. Divide dough into thirds; shape each third into ball. Place a third in clean bowl. Add red color; beat until evenly colored. Shape into disk; wrap in plastic wrap; chill 2 hours or overnight.

Clean bowl and beaters. Repeat with another third of dough, coloring it green. Shape, refrigerate as above. Repeat with final third of dough, coloring it yellow. Shape, refrigerate.

Cut green disk into fourths. Return three-quarters of dough to refrigerator. Roll the one-quarter of dough, 1/4 inch thick, between waxed paper. Remove top sheet. Cut dough into desired shapes with 2-1/2- to 3-1/2-inch cookie cutters. Cut dots out of cookies with 3/4-inch-round cookie or biscuit cutter. Invert whole piece of dough onto nonstick baking sheet. Remove waxed paper. Remove dots to nonstick baking sheet. Remove scraps; wrap; refrigerate along with sheet of cookies and dots.

Repeat step 5 with red dough. Then repeat step 5 with yellow dough. Keep all unused dough and unbaked cookies and dots on baking sheets refrigerated.

Interchange dots among holes in different-colored cookies.

Heat oven to 350 degrees F. Bake cookies 6 to 8 minutes, until edges just begin to brown. Cool cookies on racks.

Repeat rolling, cutting, baking in steps 5 to 8 using a quarter of dough at a time; then use refrigerated scraps.