1 1/4 cups white sugar
1/4 cup butter
1 3/4 cups milk
1 egg
1 teaspoon vanilla extract
1 1/4 cups all-purpose flour
1 teaspoon baking powder
1/2 teaspoon baking soda
1/2 teaspoon salt
1/4 teaspoon ground nutmeg
Preheat the oven to 350 degrees F (175 degrees C). Grease cookie sheets or line with waxed paper.
In a large bowl, cream together the sugar and butter until smooth. Beat in the milk and eggs, mixing thoroughly. Combine the flour, baking powder, baking soda, salt, and nutmeg; stir into the creamed mixture until just blended. Drop by teaspoons onto the prepared cookie sheets.
Bake for 8 to 10 minutes in the preheated oven, turning after 10 minutes. Allow cookies to cool on baking sheet for 5 minutes before removing to a wire rack to cool completely.