In a mixer, beat butter and powdered sugar until combined. Add in flour, salt, nutmeg, and anise extract. The mixture will be crumbly, use hands to form a ball. Lay on saran wrap and roll into a log shape. Wrap up tightly and refrigerate for 30 minutes.

Line a baking sheet with parchment paper. Cut slices of cookies 1/4 inch thick and lay on a baking sheet. Sprinkle with red/green sugar. Bake in a 350-degree oven for 13-15 minutes. Cool completely and store in air tight container. ENJOY!