Beat first 3 ingredients at medium speed with an electric mixer 2 minutes or until light and fluffy. Add egg yolk, and beat until smooth. Stir in extracts.
Combine flour and salt; gradually add to butter mixture, beating just until blended. Shape dough into 2 balls; wrap in wax paper, and chill 1 hour or up to 1 week.
Roll dough out on a lightly floured surface to 1/4-inch thickness. (If dough is too firm to roll, let stand 5 to 10 minutes.) Cut dough into circles using a 3-inch round cookie cutter. Cut out centers of circles using a 1-inch round cookie cutter. Place cookies on parchment paper-lined baking sheets; bake, in batches, at 350° for 10 to 12 minutes or until edges are lightly browned. Let cool on pans 1 minute. Transfer cookies to wire racks to cool completely.
Spread about 1 teaspoon raspberry preserves, strawberry jam, or buttercream frosting between 2 cookies. Dip in Decorating Icing, allowing excess to drip back into bowl. Add pieces of red licorice to resemble stripes on a life preserver ring.