Preheat the oven to 180°C.
Sieve the flour into a mixing bowl, add the butter and, using your fingers, crumble until it resembles breadcrumbs.
Add the sugar, ground almonds, egg, almond extract and 1 Tbsp of cold water. Combine well into a firm dough.
Roll the dough out thinly (to about 3mm thickness) on a lightly floured surface, then stamp out Christmas shapes with cookie or play-doh cutters.
If you want to hang the biscuits, cut out a hole in the top of each cookie using a straw or skewer.
Place the cookies on a lined baking tray and bake for about 10 minutes until lightly golden.
Let them cool completely on a wire-rack, then dust with icing sugar or decorate them to your liking.