Cream butter/margerine, sugar and eggs together.
Sift the flour, baking powder, nutmeg and salt together.
Combine the dry ingredients with the egg mixture to a reasonably soft dough.
Cover the dough and let it rest for half an hour.
Preheat the oven to 400°F.
Lightly grease the baking sheets.
Roll the dough out thinly on a surface that has been sprinkled with flour.
Cut out circles of about 2 inches in diameter, with a cookie cutter.
Place the circles evenly on the baking sheets.
Mix the beaten egg and milk and brush this lightly over the cookies.
Sprinkle a little sugar over each cookie.
Bake the cookies 8-10 minutes or until golden on the middle ovenrack.
Allow to cool on the baking sheets before placing on drying racks.
Store the cookies in an airtight container.