Preheat oven to 375 degrees F. Line baking sheets with parchment paper or silicone baking mats.
In a large bowl, cream together butter and sugar until light and fluffy. Beat in eggs, one at a time, then add vanilla extract.
In a separate bowl, whisk together flour, baking soda, salt, and nutmeg. Gradually add dry ingredients to wet ingredients and mix until just combined.
Turn dough out onto a lightly floured surface and roll to 1/4-inch thickness. Cut into desired shapes and place on prepared baking sheets. Sprinkle with decorating sugar or sprinkles.
Bake for 8-10 minutes, or until edges are lightly golden brown. Let cool on baking sheets for 2 minutes before transferring to a wire rack to cool completely.
Interesting Facts
Sugar cookies originated in Germany, with the oldest known recipe dating back to the 16th century.
Rolled sugar cookies are also known as "cutout" cookies because they are cut out using cookie cutters.
Rolled sugar cookies can be decorated with a variety of icings, sugars, and sprinkles.