In a medium mixing bowl
beat egg and egg yolks with an electric mixer on high speed 5 minutes or until thick and lemon colored. Add powdered sugar; beat on low speed until combined, then on high speed about 5 minutes more or until very thick and satiny. Beat in butter with an electric mixer on low speed. Add flour mixture, beating at low speed until combined. Stir in orange peel, orange juice, and, if using, anise seed. Carefully spoon batter into the prepared molds, filling each three-fourths full.
To decorate, fill a decorating bag fitted with a small star tip with white frosting. Pipe on hat trim at an angle about a third of the way down from narrow end of cookie. Fill decorating bag fitted with a small star tip or plain tip with red or pink frosting; pipe on hat. With white frosting, pipe on mustache, beard, and pom-pom hat. Fill decorating bag fitted with a small round tip with green, black, or blue frosting; pipe on eyes. Using red frosting, pipe on mouth. Pipe on other frosting decorations. (Or, use small round candies for eyes, nose, mouth, and cheeks, attaching them with frosting.) Wrap cookies tightly to store. Makes 24 cookies.