In a large mixing bowl, combine softened butter and granulated monkfruit. Use a hand mixer to beat them together until light, fluffy, and pale yellow. This should take about 3 minutes of consistent mixing.

Add the egg and vanilla extract to the butter mixture. Continue to mix until fully incorporated.

In a separate bowl, whisk together almond flour, coconut flour, baking powder, xanthan gum, and salt. Make sure there are no large clumps of almond flour.

Gradually add the dry ingredients to the wet mixture, mixing on low speed until a thick dough forms. The dough should be slightly tacky but not stick excessively to your fingers.

Preheat your oven to 350 degrees Fahrenheit (175 degrees Celsius).

Line a baking sheet with parchment paper. Roll the dough to a thickness of about a quarter inch and use your favorite cookie cutters to shape the cookies.

Place the shaped cookies on the prepared baking sheet. Bake for 9 to 11 minutes, or until the edges are just barely turning golden brown. The centers will still look a little soft but will firm up as they cool.

Allow the cookies to cool on the baking sheet for at least 10 minutes before transferring them to a wire rack to cool completely.