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Preheat oven to 325.
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Spray cookie sheets with non stick cooking spray.
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Cream butter, powdered sugar, milk, vanilla, and half of cinnamon (1/2 tsp.) Add 1 1/2 cups flour and baking powder.
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Mix until well blended.
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At this point you may add additional flour if dough is too sticky.
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Roll dough into 1 1/4 inch balls.
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Place on cookie sheet.
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Flatten each ball with a glass coated with granulated sugar.
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Bake 20-25 minutes until edges are golden brown.
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Let stand 3-4 minutes before coating with following mixture.
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Combine granulated sugar, grated chocolate, and remaining cinnamon in a small bowl.
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Stir to combine.
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Coat cookies with sugar, chocolate and cinnamon mixture on both sides.
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Allow cookies to cool.