Biscochitos (Mexican Cookies)

1 cup sugar
1 cup butter, softened
3 tablespoons sweet sherry
1 egg
3 cups all-purpose flour
2 teaspoons baking powder
2 teaspoons anise seed, crushed
1/4 teaspoon salt
1/4 cup sugar
1 teaspoon ground cinnamon

Preheat oven to 350 degrees F.

Mix sugar, butter, sherry and egg in a large bowl. Stir in remaining ingredients except 1/4 cup sugar and the cinnamon. Divide dough into halves. Roll each half 1/4 inch thick on a lightly floured board. Cut into desired shapes with cookie cutters; place on ungreased cookie sheet. Mix 1/4 cup sugar and the cinnamon; sprinkle on cookies. Bake until light golden brown, 10 to 12 minutes.