Creating traditional German butter cookies can be a delightful experience when you follow these straightforward steps:

1. Prep Your Workspace: Clear your kitchen counter and gather all the ingredients and tools you need, including mixing bowls and a baking sheet.
2. Cream Butter and Sugar: In a mixing bowl, use an electric mixer to cream together the softened butter and granulated sugar until light and fluffy.
3. Add Egg Yolk and Vanilla: Add the egg yolk and vanilla extract to the creamed mixture, beating until well blended.
4. Combine Dry Ingredients: In a separate bowl, whisk together the all-purpose flour, baking powder, and salt.
5. Incorporate Dry Mixture: Gradually add the dry ingredients to the wet ingredients, mixing until a dough forms.
6. Chill the Dough: Wrap the dough in plastic wrap and refrigerate for about 30 minutes. This chilling step is essential for easier handling and shaping.
7. Shape and Bake: Preheat your oven to 350°F (175°C). Roll out the dough on a lightly floured surface to about ¼-inch thickness. Use cookie cutters to shape your cookies and place them on a baking sheet lined with parchment paper. Bake for 12-15 minutes or until the edges are lightly golden.
8. Cool and Dust: After baking, allow the cookies to cool on a wire rack. If desired, dust them with powdered sugar before serving.

These steps will leave you with perfectly baked traditional German butter cookies that are sure to please.