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Mix together butter and sugar.
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Add in eggnog and egg.
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Add flour, baking powder, baking soda, salt and nutmeg.
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Chill for atleast one hour.
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Drop by teaspoonfuls (I rolled mine for a second) onto greased baking sheet.
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Bake at 350 degrees for 8-10 minutes.
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When you pull them out out the oven, push tops with the bottom of a greased flat bottom glass to flatten a bit.
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Cool on drying rack.
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Frost with eggnog frosting and sprinkle with nutmeg (the karo syrup makes the frosting harden a bit when dry)