In a stand mixer with a paddle attachment or a large bowl with a hand mixer beat the room temperature butter and sugar together until creamy and fluffy.
Add in the egg yolks and vanilla extract and mix until combined. Scrape the sides of the bowl and the bottom of the bowl to make sure the butter is evenly mixed. On low speed add in the dry ingredients and then increase to medium speed. It will not come together like dough instead the consistency will be almost like a shaggy pie crust where you have to knead it to come together.
On a lightly floured surface knead the dough together until it forms a ball. Roll the dough out with a rolling pin to 1 /2-inch thickness. Line a cookie sheet with parchment paper. Use your favorite cookie cutter and cut out the shapes to create cutout cookies.
Place the cookies on the prepared baking sheet and bake cookies at 350 degrees for 7-8 minutes. The bake time will vary depending on the size of the cookies and oven. The cookies will not be golden brown they may look even underbaked but pull them out of the oven and allow them to cool on the baking sheet for 10 minutes and then transfer to a wire rack to allow them to fully cool. Continue to roll and cut the remaining dough until finished. Allow the cookies to completely cool before decorating.
Royal Icing
Add the powdered sugar to your stand mixer. In a small bowl add corn syrup, meringue powder, and clear vanilla extract and mix. Slowly add the mixture to the powdered sugar and mix on low for 15 seconds and then medium to high speed for 5 minutes. Slowly adjust the consistency of the royal icing by adding more water. Divide the royal icing into medium-sized bowls and add gel food coloring
Cuff the piping bags over a tall cup and pour the royal icing into each bag. I like to divide up the colors into 3 or 4 small bags, so everyone gets their piping bag. You can get technical and add a coupler and a piping tip too if you want to decorate them nicely.
Store decorated cookies in a single flat layer in an airtight container. The cookies will stay moist for up to 4 days at room temperature. Individually seal and wrap cookies and freeze for up to 3 months.