Preheat your oven to 350°F and line baking sheets with parchment paper. Measure out all dry ingredients (flour, baking powder, and salt) into one bowl, and sift the powdered sugar for the royal icing into another bowl to remove any lumps. Bring your egg to room temperature if needed—this helps it incorporate smoothly into the butter mixture. Having everything ready before you start mixing ensures a smooth, efficient baking process.
In a large mixing bowl, cream together the butter and sugar for 2-3 minutes until the mixture is light and fluffy—this incorporates air and helps create tender cookies. Add the vanilla extract and room-temperature egg, mixing until fully combined. Pour in the dry ingredient mixture from Step 1 and mix until just combined; be careful not to overwork the dough, as this can make the cookies tough. I like to use quality butter like Kerrygold because it adds a subtle richness that really elevates the final cookie.
On a lightly floured surface, roll the dough to a 1/4-inch thickness. Cut out bunny shapes using a cookie cutter and place them on your prepared baking sheets, spacing them about an inch apart. Bake for 8-10 minutes, until the edges are light golden but the centers are still soft—the cookies will continue to firm up as they cool. Remove from the oven and let cool on the baking sheet for 2-3 minutes before transferring to a wire rack to cool completely.
While the cookies cool, combine the sifted powdered sugar, meringue powder, and water in a medium bowl. Whisk vigorously for 3-5 minutes until the icing reaches stiff peaks—it should look glossy and hold its shape. Divide the icing into smaller bowls if you want to use multiple colors, then add food coloring drops one at a time, stirring until you reach your desired shade. I always use Wilton meringue powder because it creates a stable, smooth finish that sets beautifully.
Transfer the royal icing into piping bags fitted with round or flat tips for easier application. Ice each cooled cookie by piping or spreading a thin layer of icing over the surface. While the icing is still wet, immediately sprinkle sanding sugar over the top if using—this adds a nice crunch and sparkle. Work in small batches so the icing stays wet enough for the sanding sugar to adhere properly.
Melt the dark chocolate and let it cool to room temperature. Transfer it to a small piping bag with a fine tip, then carefully pipe two dots for eyes and a small dot or line for the nose on each bunny cookie. Place all decorated cookies on a flat surface or wire rack and let them set undisturbed for 2 hours—the royal icing will harden to a beautiful, smooth finish that's ready to eat or gift.