Heat oven to 350°F. In large bowl, break up cookie dough; thoroughly work in flour. (DO NOT EAT RAW COOKIE DOUGH AFTER COMBINING WITH FLOUR.) Work with half of dough at a time, refrigerating remaining dough until needed.
On floured work surface, roll dough ¼ inch thick. Cut with floured 2 ½- to 3-inch holiday-shaped cookie cutters; place 1 inch apart on ungreased cookie sheets. Repeat with remaining dough.
Bake 8 to 11 minutes or until cookies are set and edges just begin to brown. Cool 2 minutes; remove from cookie sheets. Cool completely, about 20 minutes.
In small bowl, mix powdered sugar, vanilla and almond extract. Add enough milk until smooth and desired spreading consistency. Stir in food color until well blended. Spread on cookies; sprinkle with candy sprinkles. Let stand until icing is set, about 15 minutes. Store between sheets of waxed paper in tightly covered container.