Preheat your oven to 180°C (350°F). Line a baking sheet with parchment paper. This helps the cookies bake evenly and prevents sticking. Preparing the tray first makes the baking process easier and faster.

Take a medium bowl and add flour, baking powder, baking soda and salt. Whisk everything together until evenly combined. Mixing dry ingredients well helps the cookies rise evenly and keeps the texture soft.

Place softened butter and sugar in a large bowl. Use an electric mixer to beat them together. Continue mixing for about three minutes. The mixture should look light, fluffy, and pale.

Crack the egg into the butter mixture. Add milk and vanilla extract. Mix again until smooth and creamy. This step helps create the rich flavor that makes this Potbelly Sugar Cookie Recipe so delicious.

Slowly add the dry ingredients into the wet mixture. Mix gently using a spatula or mixer. Continue until a soft cookie dough forms. Avoid overmixing because it can make cookies tough.

Use a cookie scoop or tablespoon to scoop small portions of dough. Roll each piece into a ball. If you like a sweet crust, roll the dough balls in sugar before baking.

Place the cookie dough balls on the prepared baking sheet. Leave about two inches of space between each cookie. This allows the cookies to spread slightly while baking.

Place the tray in the oven and bake for 10–12 minutes. The edges should turn light golden. The centers will still look soft, which helps create the perfect chewy texture.

Remove the cookies from the oven and let them rest on the baking sheet for five minutes. Then transfer them to a cooling rack. This helps the cookies firm up while staying soft inside.

Serve the cookies warm or at room temperature. They taste wonderful with milk or tea. These soft cookies show exactly how to make Potbelly Sugar Cookie at home.