In a large mixing bowl, use an electric mixer to beat (1 cup unsalted butter) until lightened, smooth and creamy. Gradually add (¾ cup powdered sugar) until combined. Add (1 teaspoon vanilla extract) and mix until incorporated.
In a separate bowl, whisk together (2 cups all-purpose flour), (2 tablespoons cornstarch), and (½ teaspoon salt).
Gradually add the flour mixture to the wet ingredients and stir until completely combined. Shape into a disc shape, cover with plastic, and refrigerate for 20-30 minutes as you preheat the oven to 350℉.
Roll the chilled dough out on a lightly floured surface (or parchment paper) until it is about ¼ thick. Press a cookie cutter directly into the dough and transfer to a parchment lined baking sheet, about 2 inches apart—Reroll dough scraps to make more cookies.
Bake for 9-11 minutes or until the edges are beginning to a light golden color. Baking time will depend on how large and thick the cookies are.
Royal Icing
Add (4 cups confectioners' sugar), (3 tablespoons meringue powder), and 9 tablespoons water into a large bowl. Using a hand mixer or stand mixer fitted with the whisk attachment, beat icing on high speed for 1-2 minutes.
The icing is ready when you lift the whisk out of the icing and it drizzles down into the bowl and smoothes out within 5-10 seconds. Add additional water, 1 tablespoon at a time, until it reaches desired consistency. The more you beat the icing, the thicker it becomes.
To tint the icing, add a tiny amount of gel food coloring and mix. A small amount goes a long way. You can always add more coloring if needed.
To Decorate
Transfer the icing into a piping bag fitted with a small round tip. Pipe an outline of icing around the shape of the cooled cookies. Then, fill the center of the cookies with icing (we call this flooding) and let them sit undisturbed for about an hour to dry. If desired, you can add sprinkles (I used sparkling sugar) while the icing is still wet.
Notes
Butter: European butter is a delicious upgrade. It contains lower moisture and 82% fat, which gives you a more tender, soft, and delicious cookie. You can always use standard butter too!
Powdered sugar: Also known as 10x sugar or icing sugar, provides the perfect lightly sweet flavor for these cookies.
Cornstarch: This simple ingredient gives these cookies a tender, melt-in-your-mouth texture you'll love! It also helps prevent the cookies from spreading too much, so they hold their shape beautifully!
Meringue powder: This ingredient replaces raw egg whites found in traditional royal icing recipes. It eliminates the need for raw fresh eggs but provides the same consistency. You can find it in some markets' baking aisles and online. I buy it on Amazon, and it lasts for quite a while.
Make Ahead: The shortbread dough keeps well in the refrigerator for up to 5 days, or you can freeze it for longer. When you remove it from the refrigerator, let it sit at room temperature to soften up a bit for rolling. The royal icing can be made 2-3 days ahead of time. I recommend refrigerating it in a small bowl with a tight seal for up to 3 days. When you’re ready to use, bring the icing to room temperature, then mix with a whisk as it may separate. You can also whisk in a few drops of water if it's thickened.