Cream together the softened butter and powdered sugar until light and fluffy. Add the egg, vanilla extract, and almond extract, mixing until well combined.
Chill the dough by dividing it in half, shaping into disks, wrapping in plastic wrap, and refrigerating for at least 1 hour.
Preheat oven to 350°F. Roll out one disk of dough to 1/8 inch thick and cut out shapes, making a smaller cutout in half of the cookies.
Bake the cookies for 10-12 minutes until lightly golden. Let them cool on a wire rack.
Assemble the cookies by spreading jam on solid cookies and topping with cutout cookies. Dust with powdered sugar before serving.