Two-Tone Cookies

In large bowl, with mixer at low speed, beat margarine or butter and 2/3 cup sugar until blended. Increase speed to high; beat until light and fluffy. Reduce speed to low; add baking powder, vanilla extract, salt, egg, 1 1/2 cups flour, and 2 tablespoons water; beat until blended. Place half of dough in medium bowl; stir in 1/2 cup flour. Into dough remaining in large bowl, stir cocoa. Grease and flour 2 large cookie sheets. On floured surface, with floured rolling pin, roll vanilla dough 1/8 inch thick. With floured 3-inch round scallop-shaped cookie cutter, cut dough into as many cookies as possible. Place vanilla cookies on 1 cookie sheet, about 1/4 inch apart. Reserve trimmings. Repeat with chocolate dough, placing chocolate cookies on second cookie sheet. Preheat oven to 350 degrees F. With 1 1/2-inch round scallop-shaped cookie cutter, cut out small round in center of each vanilla and chocolate cookie. Fit a small vanilla cookie cutout into center of each chocolate cookie and a small chocolate cookie cutout into center of each vanilla cookie to make two-tone cookies. Sprinkle cookies lightly with 2 teaspoons sugar. Bake cookies on 2 oven racks 12 to 15 minutes until golden, rotating cookie sheets between upper and lower racks halfway through baking time. With pancake turner, remove cookies to wire racks to cool.

Repeat with remaining vanilla and chocolate doughs and remaining 1 teaspoon sugar. Store cookies in tightly covered container.