Gather all ingredients and bring the egg and butter to room temperature (about 70°F) for even mixing. In a large bowl, cream together the sugar and butter until light and fluffy, about 2-3 minutes—this incorporates air and creates a tender cookie. Add the room-temperature egg and vanilla extract, beating until fully combined. In a separate bowl, whisk together the flour, baking powder, salt, and nutmeg to distribute the leavening evenly. Fold the dry mixture into the wet ingredients until just combined; don't overmix or the cookies will be tough.
Transfer the dough from Step 1 to plastic wrap and refrigerate for at least 30 minutes—this prevents spreading during baking and makes the dough easier to cut. While the dough chills, preheat your oven to 375°F and line a baking sheet with parchment paper. I find that chilling the dough is essential for bunny shapes; it keeps the ears and details sharp during baking instead of melting into round blobs.
Remove the chilled dough from the refrigerator and place on a lightly floured surface. Roll to 1/4 inch thickness and use a bunny-shaped cutter to cut out 14-16 cookies. Transfer to the prepared baking sheet and bake for 6-7 minutes, until the edges are just set but the centers are still tender—overbaking will make them too crispy for the fondant topping. Remove from the oven and let cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.
While the cookies cool, knead the purple and pink fondant separately until soft and pliable—this makes them easier to work with and prevents cracking. Roll out each color to about 1/8 inch thickness on a surface lightly dusted with cornstarch or powdered sugar. Use a small bunny-shaped cutter to cut out fondant shapes, or cut them freehand. Set aside on parchment paper until ready to decorate.
In a clean bowl, beat the softened butter for about 1 minute until creamy. Add the sifted confectioners sugar gradually, alternating with the milk, and beat until light and fluffy, about 3-4 minutes. Stir in the almond extract for a subtle flavor that complements the bunny aesthetic. I always sift the confectioners sugar first to avoid lumpy frosting that won't spread smoothly on the delicate cookies.
Spread a thin layer of the almond buttercream from Step 5 onto each cooled cookie from Step 3. Gently press a fondant bunny topper from Step 4 onto each frosted cookie, pressing lightly so it adheres but doesn't sink into the frosting. Transfer the frosting to a piping bag fitted with a small round tip and pipe a small fluffy tail onto each bunny using a circular motion—this adds dimension and cuteness. Let the frosting set for 15-20 minutes before serving.