Place flour and salt in medium bowl; stir to blend. Beat sugar and butter in large bowl with electric mixer at medium speed until light and fluffy. Beat in egg, vanilla and almond extract. Gradually add flour mixture. Beat at low speed until well blended. Divide dough in half; cover and refrigerate 30 minutes or until firm.

Preheat oven to 350°F. Working with 1 portion at a time, roll out dough on lightly floured surface to 1/4-inch thickness. Cut dough into desired shapes with assorted floured cookie cutters. Reroll trimmings and cut out more cookies. Place cutouts on ungreased cookie sheets. Using drinking straw or tip of sharp knife, cut hole near top of each cookie to allow for piece of ribbon or string to be inserted for hanger. Bake 10 to 12 minutes or until edges are golden brown. Let cookies stand on cookie sheets 1 minute. Remove to wire racks to cool completely.

Prepare Icing. Spoon Icing into small resealable food storage bag. Cut off very tiny corner of bag; pipe Icing decoratively on cookies. Decorate with candies as desired. Let stand at room temperature 40 minutes or until set. Thread ribbon through each cookie hole to hang as Christmas tree ornaments.

Place powdered sugar and milk in small bowl; stir with spoon until smooth. (Icing will be very thick. If it is too thick, stir in 1 teaspoon additional milk.) Divide into small bowls and tint with food coloring, if desired.