In large mixing bowl beat butter with electric mixer on medium to high speed for 30 seconds. Add sugar, baking powder, salt, and nutmeg. Beat until combined, scraping sides of bowl occasionally. Beat in egg, milk, and vanilla until combined. Beat in as much flour as you can with the mixer. Stir in any remaining flour. Divide dough in halves. Wrap; refrigerate dough for 1 hour or until easy to handle.

Preheat oven to 375 degrees F. On a lightly floured surface, roll half the dough to 1/8 inch thickness. Refrigerate remaining dough until ready to roll. With a 3-inch star-shape cookie cutter, cut dough. Place 1 inch apart on ungreased cookie sheets. Sprinkle with sugars.

Bake for 5 to 6 minutes or until edges are light brown. Transfer cookies to wire racks to cool. Makes about 4-1/2 dozen cookies.

For thicker, cakier cookies, roll dough to 1/4-inch thickness. Bake for 8 to 9 minutes.