Preheat oven to 350º.
Combine sugar and nutmeg in a small dish. Slice and shape dough into 25 (1-inch) balls; roll in sugar mixture. Place cookies 2-inches apart on a baking sheet coated with cooking spray.
Bake at 350º for 10 to 12 minutes or until edges are lightly browned. Place cookie sheet on a wire rack, and press a cherry into the center of each cookie. Let cool 3 minutes; remove cookies to wire rack, and cool completely.