What is a good recipe for cut-out sugar cookies that don't balloon out when baking?

Here’s our recipe from the 15^th edition New Cook Book, it turns out very well for icing.

Sugar Cookie Cutouts

Prep: 40 minutes   Chill: 30 minutes    Bake: 7 minutes per batch   Oven: 375°F

Makes: 36 to 48 cookies

Ingredients

2/3 cup butter, softened

3/4 cup granulated sugar

1 teaspoon baking powder

1/4 teaspoon salt

1  egg

1 tablespoon milk

1 teaspoon vanilla

2 cups all-purpose flour

1 recipe Powdered Sugar Icing (see page 000) (optional)

1. In a large mixing bowl beat butter on medium to high speed for 30 seconds. Add granulated sugar, baking powder, and salt. Beat until combined, scraping sides of bowl occasionally. Beat in egg, milk, and vanilla until combined. Beat in as much of the flour as you can with the mixer. Stir in any remaining flour. Divide dough in half. Cover and chill dough about 30 minutes or until easy to handle.

2. Preheat oven to 375°F. On a floured surface, roll half the dough at a time to 1/8- to 1/4-inch thickness. Using a 2 1/2-inch cookie cutter, cut into desired shapes. Place 1 inch apart on ungreased cookie sheets.

3. Bake in the preheated oven for 7 to 10 minutes or until edges are firm and bottoms are very light brown. Transfer to wire racks and let cool. If desired, frost with Powdered Sugar Icing.