Place softened butter, sugar, egg, almond extract, and vanilla extract in a mixing bowl and beat with an electric mixer until smooth.
Gradually add flour, baking powder, and salt, beating continuously until combined.
Refrigerate the dough for 20 to 30 minutes.
Preheat the oven to 325°F (165°C) and lightly grease the baking sheets.
Remove small portions of dough from the refrigerator, scooping 1 heaping teaspoon at a time onto waxed paper.
Roll the dough into thin finger shapes using the waxed paper, then press an almond into one end to resemble a fingernail.
Pinch the dough near the tip and center to form knuckles, using a sharp knife to add lines for a more realistic appearance.
Arrange the shaped cookies on the baking sheets and bake until slightly golden, about 20 to 25 minutes.
Remove the almond from each cookie’s tip, add a small amount of jam or red decorating gel into the cavity, and reattach the almond so the jam oozes out around the tip.