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Mexican Sugar Cookies - Biscochitos

1 1/4 cups granulated sugar, divided use
1/2 cup unsalted butter, softened
1/2 cup vegetable shortening
1 large egg
2 tablespoons sherry
1/2 teaspoon vanilla extract
1 teaspoon anise extract
2 1/2 cups all-purpose flour
1 1/2 teaspoons baking powder
1/2 teaspoon salt
1 1/2 teaspoons ground cinnamon

1. Cream 1 cup sugar, butter and shortening in a large bowl until light and fluffy. Beat in egg, sherry and vanilla until well combined. Beat in anise. In a separate bowl, whisk together flour, baking powder and salt; stir into butter-egg mixture until well mixed. Divide dough in half. Wrap each half in plastic wrap and chill for 30 minutes to 1 hour, or until dough has firmed up, but is still quite pliable.
2. Preheat oven to 350°F.
3. Combine cinnamon with remaining sugar in a small bowl; set aside.
4. On a lightly floured surface, roll out each half of dough 1/8 inch thick. Cut into desired shapes with cookie cutters, re-rolling scraps just once. Place on ungreased cookie sheets and sprinkle with cinnamon-sugar mixture.
5. Bake in the center of oven for 10 to 12 minutes, or until golden. Remove to wire racks to cool.

Makes 36 cookies.