Combine flour, baking powder, soda, and nutmeg in a large mixing bowl; cut in shortening with a pastry blender until mixture resembles coarse crumbs.
Combine eggs, sugar, milk, and vanilla in a small mixing bowl; mix well, and pour into crumb mixture. Stir with a fork until moistened. Shape into a ball. Chill 1 hour.
Divide dough in half, keeping one half chilled until ready to use. Roll to 1/8-inch thickness on a lightly floured surface; cut with assorted cookie cutters.
Place on lightly greased cookie sheets; bake at 375° for 5 minutes or until edges are lightly browned. Remove from cookie sheets, and cool on wire racks. Repeat procedure with remaining dough. Decorate as desired with Powdered Sugar Glaze.
Oxmoor House Homestyle Recipes