In a medium bowl whisk the flour, baking powder, and salt together. Set aside.
In a large bowl beat the butter and sugar with a mixer on medium-high speed until light and fluffy, about 3 minutes. Then add the honey, egg, and vanilla and continue beating until smooth.
Add the dry ingredients to the wet ingredients and mix on low until combined. Dough will be relatively soft. If the dough seems too soft and sticky for rolling, add 1 more Tablespoon of flour.
Place some plastic wrap on the bench and tip the mixture into this. Slightly flatten into an oval shape. Wrap well in plastic wrap and refrigerate for at least two hours.
Once the dough is chilled preheat oven to 180 degrees C and line two baking trays with baking paper.
Split the dough into two portions to make it easier to work with. Knead the dough gently using well-floured hands, then on a well-floured bench, roll the dough to the desired thickness (5mm works well).
Cut into shapes with 3-inch cookie cutters. Arrange 1 inch apart on the prepared trays. Reroll the scraps and cut out more cookies. (If the dough is too soft to work with, refrigerate until firm.)
Bake, switching the pans halfway through until the cookies are lightly browned, 18 to 20 minutes. Let cool on the pans.
Meanwhile, make the icing: Beat icing sugar, vanilla extract, and water with a mixer on medium speed until soft glossy peaks form. Beat in up to 1 more tablespoon water to thin the consistency if necessary. Spread or pipe the icing onto the cookies once cooled.