In a large mixing bowl or the bowl of a stand mixer, beat 1 1/2 cups granulated sugar, 1 cup salted butter (softened), 8 ounces cream cheese (softened), and 1 large egg together on medium speed until light and fluffy, about 4 minutes.
Add the 1 teaspoon almond extract and 1 teaspoon vanilla extract, and mix for 1 minute until incorporated.
In a separate bowl, whisk together 2 1/2 cups all-purpose flour, 1 teaspoon baking powder, and 1/2 teaspoon baking soda until evenly combined.
Add the dry ingredients to the wet ingredients, mixing on low speed. Once combined, increase to medium speed and mix for about 2 minutes until a soft dough forms.
Press the dough evenly into an ungreased jelly roll pan (approximately 18x13 inches).
Bake for 20 minutes, or until the edges are lightly golden and a toothpick inserted in the center comes out clean. Let the cookie base cool completely in the pan.
To make the frosting, beat 1/2 cup salted butter (softened) 4 ounces cream cheese (softened), and 1 teaspoon vanilla extract together in a medium bowl or stand mixer on medium speed for about 2 minutes until smooth and creamy.
Gradually add 3 1/2 cups powdered sugar. Add 1 tablespoon of milk at a time to thin it out as needed to reach a smooth and spreadable consistency. Add 2-3 drops liquid food coloring, if using, and mix until the color is evenly spread throughout.
Spread the frosting evenly over the cooled cookie bars. Add sprinkles if desired. Cut the cookies into bars and serve.
Notes
if using unsalted butter, be sure to add in 1/4 teaspoon of salt to the dough.