You will also need:
Royal Icing
Food coloring
Gold or silver dragees

Directions:

1. In a medium-size bowl, sift together flour and baking powder; set aside.
2. In mixing bowl cream butter and vanilla. Gradually beat in sugar, egg and milk. Reduce speed to low and gradually beat in flour mixture.
3. Gather dough into a ball, flatten to a 5-6-inch round, and wrap in plastic. Refrigerate dough at least 50 minutes or overnight.
4. When dough has chilled, lightly grease 2 baking sheets and preheat oven to 325º F (160º C).
5. Grease 2 baking sheets; set aside.
6. Cut dough round in half. Flour working area, place one half of dough in center and roll out dough to 1/5-inch thickness.
7. Using round cookie cutter (we used 3-inch round shape), cut out as many cookies as possible. Remove all trimmings and press together; set aside.
8. Put cookies onto greased baking sheet. Repeat with remaining half of cookie dough to fill second baking sheet. Reroll trimmings to cut out more shapes.
9. Bake cookies 10-12 minutes or until just golden at edges.
10. Cool cookies 5 minutes on baking sheets and remove to wire racks to cool completely.

To Decorate Cookies:
To decorate cookies as pictured use a pastry brush and paint the front of cookies with a thick coat of yellow Royal Icing.
While yellow icing is still wet, place gold or silver dragees over each cookie and set aside to dry.
To store, arrange cookies in a single layer in airtight container.

TIPS:
Using this classic cookie dough and different cookie cutters, you can create delightful holiday ornaments that are simple even for kids to make. This cookie recipe is great for eating or decoration and for keeping and giving.
You can prepare and store cookies up to a week ahead, displaying only a few hours before eating.