Preheat oven to 350 degrees and line a baking sheet with parchment paper. Keep it aside. In a large bowl, whisk together flour, baking powder, and salt. In another bowl, mix together the sugar, egg, milk, and and vanilla extract until completely combined.

Gradually add the dry mixture into the wet mixture and mix until a smooth dough is formed. Divide the dough in two. Start with the first dough piece, roll out about 1/4 inch thickness, and using a cookie cutter, cut the donut shapes.

You will need one large circle cookie cutter and a small for the center. Place on prepared cookie sheet 2 inches apart. Bake cookies for 10-12 minutes or until edges begin to brown very slightly. Remove from the oven and allow it to cool for 5 minutes on pan.

To prepare royal icing, whisk the egg white until soft peaks form. Add the powdered sugar and whisk until smooth. Add in water, corn syrup, food colour, and vanilla extract. Add water as needed making sure the consistency is thicker rather than runny.

Once the sugar cookies are completely cooled, dip each one into the prepared icing. Allow the excess icing to drip off. Place the cookie with the icing side up on a cooling rack. Decorate with sprinkles.