STEP ONEBEAT shortening and sugar in large bowl with mixer on medium speed until smooth and creamy. Beat in egg, milk and vanilla until well blended.
STEP TWOCOMBINE flour, baking powder and salt in medium bowl. Gradually add to shortening mixture on low speed until blended. Divide dough into three pieces. Wrap in plastic wrap. Chill 1 hour.
STEP THREEHEAT oven to 375ºF. Roll 1 piece of dough at a time on lightly floured surface to 1/8-inch thickness. Cut dough with 2 to 3-inch floured cookie cutters. Place 1-inch apart on ungreased baking sheets.
STEP FOURBAKE 5 to 9 minutes or until edges begin to brown. Cool 2 minutes. Remove to wire rack to cool completely. Decorate as desired.
STEP ONEDROP COOKIES: Do not chill dough. Drop dough by rounded measuring tablespoonsful 2 inches apart onto ungreased baking sheet. Bake at 375ºF for 7 to 8 minutes.