Beat butter at medium speed with an electric mixer until creamy; gradually add sugar, beating well. Add egg yolks, 1 at a time, beating until blended after each addition.
Combine flour, baking powder, and salt; gradually add to butter mixture, beating at low speed until blended after each addition. Stir in extracts. Divide dough in half; wrap each portion in plastic wrap. Chill at least 4 hours.
Roll 1 portion at a time to 1/4-inch thickness on a lightly floured surface. Cut with a 6-inch toy soldier cutter, and place 2 inches apart on lightly greased baking sheets.
Bake at 350° for 15 minutes or until edges are golden. Cool on baking sheets on wire racks 3 minutes; remove cookies to wire racks to cool completely.
Decorate with Powdered Sugar Paints, using a small spatula or paintbrush.