Preparation / Directions:
Stir together the flour, granulated sugar, baking powder, salt and nutmeg in a large bowl. Cut in butter till pieces are the size of small peas. Make a well in the center. Combine egg and eggnog in a small bowl; add all at once to dry mixture. Stir till moistened. Cover and chill dough about 2 hours or till firm enough to handle.
Line cookie sheet with foil; set aside. Roll dough out on a well-floured surface to 1/4 inch thickness. Cut into desired shapes using cookie cutters, rerolling trimmings as necessary. Cut out smaller holes inside the shapes. Place cookies about 1 inch apart on prepared cookie sheets. Sprinkle crushed candies into the holes.
Bake in a 375 F oven for 10 to 12 minutes or till edges are firm and light brown. Remove cookie sheets from oven; let cool 5 minutes. Carefully transfer cookies, still on the foil, to wire racks to cool completely.
Carefully peel foil from bottoms of cooled cookies. Spread cookie tops with Eggnog Glaze. Sprinkle with decroative sugars as desired.