In a large mixing bowl,stir together the flour,baking powder,and salt. Set aside.
In another large mixing bowl,using an electric mixer on a medium speed ,beat the butter until smooth and creamy. Add the sugar and combine well. Beat in the eggs and vanilla. Gradually add the dry ingredients in 3 parts,beating only enough to combine. Shape dough into a ball,cover and refrigerate for 1 hour.
Preheat oven to 350 degrees F. Line cookie sheets with parchment paper. ( I use baking stones)
Place the remaining flour into a small bowl. Sprinkle some of the flour onto a flat work surface. Scoop out about 3 tablespoons of the dough and place on surface. Dip cookie cutters and small rolling pin into the bowl of flour. Roll dough out to about 1/4 inch thickness. Cut out the cookies and place on baking sheets. Continue to cut out all of the cookies, re-rolling the pieces of dough.
Bake about 10 minutes or until cookies are light golden brown around the edges. Remove baking sheets from oven and allow to set 5 minutes. Transfer cookies to a wire cooling rack.
To make the frosting,place the confectioner sugar in a large mixing bowl. Add the shortening, vanilla and 1/3 cup water. Slowly beat together on the lowest speed of mixer. Add additional water a tablespoon or 2 at a time and increase speed on the mixer. Beat until smooth.
Divide icing into separate small bowls. Using a toothpick or end of a plastic butter knife, add the coloring paste to each bowl. If icing is too thick, add drops of water and stir to desired consistency; if too thin, add small amounts of confectioner sugar. Decorate cookies as desired.
Place some of the icing in pastry bags also to decorate cookies.