2 cups flour
1/8 teaspoon salt
1/2 cup granulated sugar
1/2 teaspoon nutmeg
3/4 cup butter
1/3 cup light cream (milk may substitute)
1 cup powdered sugar
food color, if desired
candy decorations, if desired
Combine flour, salt, granulated sugar, and nutmeg. Mix well. Cut butter into flour mixture using two knives, a fork, or a pastry blender until mixture resembles coarse cornmeal.
Finely grate lemon peel. Set lemon aside. Add lemon peel, egg, and cream to flour mixture. Stir with a fork until all dry ingredients are mixed in. Texture should resemble pastry crust. Firmly press dough into a ball. Roll dough out on a lightly floured surface to 1/4 inch thickness. Using cookie cutters, cut dough into desired shapes. Place on lightly greased cookie sheet. Bake at 350 degrees for 10-12 minutes or until lightly browned on edges. Before removing cookie from pan, brush glaze over tops of hot cookies, then remove from pan and cool on wire racks.
Glaze: Squeeze the juice from the lemon and measure out 2 tablespoons. Combine lemon juice and powdered sugar. Beat until smooth.
Note: For a less tart cookie, substitute an orange peel and juice for the lemon in the recipe.