In a medium bowl whisk together the flour, baking powder, salt and nutmeg.
Using an electric mixer (hand held or a stand mixer fitted with the paddle attachment) beat together the butter and sugar on medium speed until light and airy (3 minutes).
Turn the mixer speed to low and beat in the egg, eggnog and vanilla extract just until combined.
Slowly pour in the flour mixture and beat until a dough is formed (do not overmix).
Divide the dough in half. Place each half of dough on some plastic wrap or wax paper, shape into 2 thick discs and seal individually. Chill in the refrigerator for 1 hour.
Preheat oven to bake at 375 degrees Fahrenheit. Line two large baking sheets with parchment paper. Set aside.
Place one of the chilled dough discs on a lightly floured surface and roll it out with a large, floured rolling pin. Roll the dough to approximately ¼ inch thickness.
Cut out desired shapes and place onto the lined baking sheet leaving roughly an inch of space around each cookie.
Place into the preheated oven onto the middle rack and bake for 8-10 minutes or until edges of the cookies just start to turn lightly golden brown.
Let cookies cool on the baking sheet for 5-10 minutes. Transfer them to a cooling rack to cool completely before frosting and decoration.
Nutritional information for the cookies only.Eggnog substitutionIf it's not holiday time or you'd prefer a different flavor, substitute heavy cream for the eggnog. You can add more vanilla or another extract like almond extract to give the cookies more flavor too.How to StoreStore in an airtight container at room temperature for up to 5 days.Freezing instructionsYou can freeze the baked cookies undecorated or after decorating (using our frosting). Allow the cookies to fully cool. Place in an airtight freezer safe container with a layer of parchment paper between layers of decorated cookies (not necessary if not decorated). Freeze for up to 3 months. Thaw in the refrigerator.Freezing the cookie dough: Prepare and seal the dough discs. Place in a freezer bag for more protection. Free for up to 2 months and thaw in the refrigerator. Proceed with the recipe as written.