PREPARATION:
- Beat butter in large bowl with electric mixer at medium speed until smooth. Add sugar; beat until well blended. Add egg and vanilla; beat until well blended.
- Combine flour, baking powder and nutmeg in medium bowl. Add flour mixture and milk alternately to butter mixture, beating at low speed after each addition until well blended.
- Shape dough into 2 logs, each about 2 inches in diameter and 6 inches long. Roll logs in colored sprinkles, if desired, coating evenly (about 1/4 cup sprinkles per roll). Or, leave logs plain and decorate cookies with melted chocolate after baking. Wrap each log in plastic wrap. Refrigerate 2 to 3 hours or overnight.
- Preheat oven to 350°F. Grease cookie sheets. Cut logs into 1/4-inch-thick slices; place 1 inch apart on prepared cookie sheets. (Keep unbaked logs and sliced cookies chilled until ready to bake.)
- Bake 8 to 10 minutes or until edges are golden brown. Transfer to wire racks to cool.
- Dip plain cookies in melted chocolate, or drizzle chocolate over cookies with fork or spoon, if desired. Place cookies on wire racks until chocolate is set. Store in airtight container.