Combine the butter, sugar, egg, almond extract, and vanilla extract in a mixing bowl. Beat together with an electric mixer; gradually add the flour, baking powder, and salt, continually beating; refrigerate 20 to 30 minutes.
Preheat oven to 325 degrees F (165 degrees C). Lightly grease baking sheets.
Remove dough from refrigerator in small amounts. Scoop 1 heaping teaspoon at a time onto a piece of waxed paper. Use the waxed paper to roll the dough into a thin finger-shaped cookie. Press one almond into one end of each cookie to give the appearance of a long fingernail. Squeeze cookie near the tip and again near the center of each to give the impression of knuckles. You can also cut into the dough with a sharp knife at the same points to help give a more finger-like appearance. Arrange the shaped cookies on the baking sheets.
Bake in the preheated oven until the cookies are slightly golden in color, 20 to 25 minutes.
Remove the almond from the end of each cookie; squeeze a small amount of red decorating gel into the cavity; replace the almond to cause the gel to ooze out around the tip of the cookie.
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