Preheat your oven to 325°F (165°C). Line a baking sheet with parchment paper to prevent the cookies from sticking.
In a large mixing bowl, beat the softened butter and sugar until light and fluffy. You can do this by hand or use a mixer for quicker results.
Gradually add the flour to the butter-sugar mixture, mixing until just combined. The dough will be a bit crumbly—this is normal for shortbread.
Gather the dough into a ball with your hands. If it feels too dry and isn’t coming together, you can add a tiny splash of water, but only as needed.
Place the dough on a lightly floured surface. Roll it out to about 1/2 inch (1.25 cm) thickness. Thicker dough will make softer cookies, while thinner dough will yield crisper shortbread.
Use a cookie cutter or a knife to cut the dough into your preferred shapes. Traditionally, shortbread is cut into rectangles or rounds, but feel free to get creative!
Place the cookies on the prepared baking sheet, spacing them slightly apart. Bake in the preheated oven for 20-25 minutes, or until the edges start to turn golden brown. Avoid over-baking, as shortbread should remain pale.
Remove the cookies from the oven and let them cool on a baking sheet for a few minutes before transferring them to a wire rack to cool completely. Once cooled, dust them with powdered sugar if desired.