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In a large bowl, beat the shortening and margarine with an electric mixer at medium to high speed for about 30 seconds, or until softened.
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Add 1 cup of the flour, sugar, egg, milk, baking powder, and vanilla extract and beat until thoroughly combined, scraping the sides of the bowl occasionally.
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Beat or stir in the remaining flour.
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Divide the dough in half. Cover and chill for 1 to 2 hours or until easy to handle.
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Roll each portion of the dough to 1/8 inch thickness on a lightly floured surface. Cut into the desired shapes.
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Place 1 inch apart on an ungreased cookie sheet.
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If desired, sprinkle with candies or colored sugar before baking,.
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Bake at 375 for 7 to 9 minutes or until the edges are firm and the bottoms are very lightly browned. Remove the cookies and cool on a rack.