Cake-Like Cookies Need Some Tinkering & Frosting Recipe Needed

Hello! I have a recipe that I really like for cutout cookies, with one minor issue: although they work really well for cutting out shapes and they do taste yummy, I find them to be a little too cakey for my preferences. I prefer chewy cookies in general, or cutout cookies that are more dense and crumbly. Can someone help me adjust this recipe to achieve the right result? I was thinking maybe reduce the eggs, or melting some of the butter first. Here's the original recipe:

2 cups sugar
1 cup butter
3 eggs
3 tsp. baking powder
1.5 tsp vanilla extract

Cream the above ingredients until fluffy. Stir in:

1 cup milk
1 Tbls. vinegar
1 tsp. baking soda

Add enough flour to form a soft dough. Roll it out, cut out shapes and bake at 400 degrees F.

I would really appreciate any suggestions! Also, does anyone have a good basic frosting recipe for cutout cookies? Thanks in advance.

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