Preheat oven to 350 degrees. Prepare two baking sheets by lining with parchment paper. Set aside. Pulse pistachios in a food processor until finely ground. Set aside.
Add softened butter to bowl of stand mixer. Beat on medium for 1 minute. Add 3/4 cup powdered sugar, vanilla extract, and almond extract and mix on low until combined. Add flour, 3/4 cup of ground pistachios, and food coloring and mix on low until dough forms.
Pour dough out on large square of plastic wrap. Cover with another large square of plastic wrap. Using a rolling pin, roll dough into a 9x9 rectangle. Place sheet of dough in freezer for 20-30 minutes, or until firm.
Remove from freezer and cut dough into 6 rows and 6 columns to make 36 evenly sized squares. Take one square and roll into a ball. Place ball on prepared baking sheet. Repeat with rest of the dough, placing dough balls no more than 1 inch apart. These cookies won't spread much so no need to keep them very separated.
Bake in preheated oven for 14-15 minutes or until the edges begin to brown. Remove from oven and let cool for 5 minutes. Place remaining powdered sugar in a small bowl. Toss cookies in powdered sugar twice. Sprinkle remaining ground pistachios over the cookies. Serve immediately, or let them cool and then store for up to 3 days.