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Preheat oven to 325 degrees.
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Cream together butter, sugar, egg and vanilla. Add the flour and baking powder.
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Chill dough several hours or overnight. If too stiff to work with, allow to be at room temperature for about an hour or so.
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Roll thin (about 1/8 inch thick). Cut with Christmas cookie cutters.
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Put onto greased cookie sheet.
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Brush with egg yolk (this is optional).
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Bake for about 8 minutes.
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NOTE: Phyllis frosts her cookies with colored frosting made with confectioners' sugar and water (not too thick though!).