Prepare the Dough : In a large mixing bowl, beat the softened butter and granulated sugar until light and fluffy, about 2–3 minutes. Add the vanilla extract, egg, and milk, and beat until well combined. Gradually mix in the all-purpose flour and salt until a smooth dough forms.

Chill the Dough : Divide the dough into two portions. Flatten each into a disk, wrap in plastic wrap, and refrigerate for at least 30 minutes. Chilling the dough ensures the cookies hold their shape while baking.

Shape the Cookies : Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper. Roll out one portion of the dough on a floured surface to about ¼-inch thickness. Use cookie cutters to cut out desired shapes. Alternatively, roll the dough into small balls and flatten them slightly with your palm or a fork for a classic look. Place the cookies on the prepared baking sheets, spacing them about 1 inch apart.

Bake : Bake the cookies for 10–12 minutes, or until the edges are lightly golden. Remove from the oven and let the cookies cool on the baking sheet for 5 minutes before transferring them to a wire rack to cool completely.

Decorate the Cookies (Optional) : Melt the semi-sweet or white chocolate chips with 1 teaspoon of coconut oil in the microwave in 20-second intervals, stirring between each until smooth. Dip the cooled cookies halfway into the melted chocolate and place them on parchment paper. Add sprinkles before the chocolate sets for extra festive flair.

Serve and Enjoy : Once the chocolate has set, serve the cookies immediately or store them in an airtight container at room temperature for up to 5 days.