Mix flour, salt and sugar in a mixing bowl. Drop the tiny pieces of butter and using a pastry cutter or a fork or your hand, press down the butter pieces and mix it with the flour. The butter pieces should be well mixed with the flour and resemble coarse crumbs.
Mix the rainbow sprinkles into it and pour water and milk. Using a rubber spatula, mix it to form a dough. Then, using you hand, knead for a while to make smooth dough out of it.
Cover the dough with a clear wrap and allow it to rest in the refrigerator for about 30 minutes.
While rolling the dough, place a parchment paper below the dough and one above. This will avoid the dough from sticking to the rolling pins. Roll it to ¼ inch thick and using the alphabet cookie cutter, cut out as many alphabets as you can.
Line the cookies on a baking sheet and put the baking sheet in the refrigerator for about 10 minutes.
In the meantime, preheat the oven to 350F.
Bake the cookies for about 12 to 14 minutes or until the edges are mild golden in shade. Using a metal spatula, transfer the cookies to a wire rack to cool off completely. If you don’t have a wire rack, just take it off from the hot baking pan to a plate.