Whisk together the flour, baking powder, and salt in a large bowl.

In another large bowl, beat the softened butter and cream cheese together until smooth and creamy, about 2 minutes.

Add granulated sugar and beat until fluffy, about 1 minute.

Add the egg, vanilla extract, and almond extract. Beat on high speed until well combined, about 1 minute.

Add the dry ingredients to the wet ingredients and mix on low speed until well combined.

Divide the dough into two equal parts and roll each part out on floured parchment paper until about 1/4-inch thick.

Dust the rolled-out dough with flour, place parchment paper on top, add the second rolled-out dough, cover with plastic wrap, and refrigerate for at least 2 hours.

Preheat oven to 350°F (177°C) and line baking sheets with parchment paper.

Remove dough from refrigerator, cut into shapes using cookie cutters, and place on lined baking sheets.

Bake for 12-13 minutes until lightly browned around edges. Allow cookies to cool on baking sheet for 5 minutes, then transfer to wire rack.

In a medium bowl, beat all glaze ingredients together until creamy and smooth, about 2 minutes.

Spread Nutella glaze on cooled cookies, adding chopped hazelnuts as desired.