Ornament Cookies

Combine 1 1/4 cups powdered sugar, 1 cup butter, egg and 1 teaspoon vanilla in large bowl. Beat at low speed, scraping bowl often, until creamy. Add flour and baking soda; beat until well mixed. Divide dough in half; wrap each half in plastic food wrap. Refrigerate until firm (at least 2 hours). Heat oven to 375 °F (190°C). Roll out dough on lightly floured surface, one-half at a time (keeping remaining dough refrigerated), to 1/8 to 1/4-inch thickness. Cut with 4-inch cookie cutter. Place 2 inches apart onto ungreased cookie sheets. Sprinkle with decorator sugars, if desired. Bake for 6 to 10 minutes or until edges are lightly browned. While cookies are still warm, use toothpick or straw to make holes for ribbons to hang cookies as ornaments. Cool completely. Combine 2 cups powdered sugar, 1/4 cup butter and 1 teaspoon vanilla in small bowl. Beat at low speed, scraping bowl often and adding enough milk for desired frosting consistency. Tint frosting with food color, if desired. Frost and fill cooled cookies as desired.