Preheat oven to 350 degrees F and prepare cookie sheet with parchment paper.

In food processor, pulse dry ingredients three times to combine. Add butter and pulse to form a coarse meal.

Add wet ingredients to mixture and blend to combine. If moisture is needed to bring dough together, add 1 tablespoon water at a time. (Note: This should be a smooth dough, not super sticky.)

Form dough into a square and wrap it tightly in plastic wrap. Freeze 15 minutes.

Remove dough from freezer and unwrap. Using another sheet of plastic wrap, cover dough and roll ⅛ to ¼ inch thick.

Using animal shaped cookie cutters, cut dough into cookies. Place cookie shapes on prepared cookie sheet and freeze 15–45 minutes.

Bake 15–20 minutes or until golden brown, rotating pan halfway through baking. Allow cookies to cool 5 minutes before removing from pan, then place on cooling rack to cool completely.

In a small bowl, combine powdered sugar and 1 teaspoon water. Mix well, adding ¼ teaspoon water at a time to form a thick icing.

Dip cookies face down in icing and add sprinkles if desired. Before storing, allow icing to dry fully. Can be stored in an airtight container.