Preheat oven to 350°F (175°C) and line baking sheets with parchment paper.
Cream the softened butter and granulated sugar in a stand mixer until light and fluffy.
Add the egg and vanilla extract, beating until fully incorporated.
In a medium bowl, whisk together the flour, baking powder, and salt.
Gradually mix the dry ingredients into the butter mixture on low speed until a dough forms.
Scoop 1-tablespoon portions of dough and roll into smooth balls.
Place the sprinkles in a small bowl and roll each dough ball in them to coat thoroughly.
Arrange dough balls on the prepared baking sheets 2 inches apart.
Bake for 10 minutes or until the edges are just beginning to turn golden.
Cool on the baking sheet for 5 minutes before transferring to a wire rack.