In a bowl, cream butter and sugar together until smooth. Add egg and vanilla extract. Mix until well combined. Add flour, salt, cinnamon, nutmeg, baking powder, and baking soda. Mix until just combined. You should get a soft dough consistency.
Using a rolling pin or a wine bottle (I mean, whatever works), roll out the dough onto a piece of parchment paper to about 1/4″ thickness.
Place the rolled out dough on a baking sheet then press another piece of parchment paper on top. Transfer the rolled out dough to the refrigerator for 1 hour. Doing this will prevent the cookies from spreading while baking. Do not skip this step.
Preheat oven to 350 degrees F. Line a baking sheet with parchment paper. Set aside.
Remove the dough from the refrigerator. Using a round cookie cutter, make the cookie rounds. Transfer to the baking sheet. Re-roll the remaining dough and continue cutting until the entire dough is used. I got 18 cookies out of this dough.
Bake for 10 minutes. Remove from the oven and cool for 5 minutes before icing. The tops of the cookie should be smooth and the edges crispy and very lightly browned.
To make the coquito icing, mix together powdered sugar, coconut milk, white rum and cinnamon in a bowl. The icing should be drippy and not too thick.
Dip each cookie into the icing, allowing excess to drip off, then place on a plate. Allow the icing to set for 5 minutes before serving. Enjoy!
These cookies stay soft for 5 days at room temperature.You can place baked sugar cookies without the icing in the freezer for up to 3 months in an airtight container. If the cookies already have the icing, do not refrigerate.The dough can be chilled for up to 2 days or placed in the freezer for up to 3 months. Just make sure to thaw in the refrigerator for 1 hour before using.Sugar cookie recipe adapted from Sally's Baking Addiction