Cream together butter and sugar until light and fluffy. Beat in egg.
Sift together flour and baking powder. Add dry ingredients to creamed mixture, stirring well to blend. Knead dough lightly until it holds together.
Roll dough on floured surface to 14" square. Cut into 49 (2") squares. Place squares about 2" apart on ungreased baking sheet. Prick each with fork. Bake in 325 oven 12 minutes or until lightly browned. Remove from baking sheets; cool on racks.