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Cream 1 cup sugar, butter and shortening in a large bowl til light and fluffy.
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Beat in egg, sherry vanilla and anise til well combined.
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In a separate bowl, mix together flour, baking powder and salt; stir into butter-egg mixture til well mixed.
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Divide dough in half.
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Wrap each half in plastic wrap and chill for 30 minutes to 1 hour, or til dough is firm, but is still quite workable.
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Preheat oven to 350' degrees F.
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Combine cinnamon with remaining sugar in a small bowl; set aside.
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On a lightly floured surface, roll out each half of dough 1/8 inch thick.
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Cut into desired shapes, re-rolling scraps just once.
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Place on ungreased cookie sheets and sprinkle with cinnamon-sugar mixture.
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Bake 10 to 12 minutes, or til golden.
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Remove to wire racks to cool.