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Step 1
Divide dough in half; form into two 1/2-inch-thick disks. Wrap in plastic; chill until firm, at least 1 hour.
Step 2
Preheat oven to 350 degrees. On a piece of floured waxed paper, roll one disk to a thickness of 3/16 inch; chill. Repeat with remaining dough.
Step 3
Flouring cutters as you go (to prevent sticking), cut dough into desired shapes; carefully transfer to baking sheets. Re-chill rolled-out dough if difficult to work with.
Step 4
If decorating, brush with egg wash, then sprinkle with sugar or sprinkles. Bake until edges are firm (not brown), 15 to 20 minutes for 3-inch cookies. Cool 1 to 2 minutes on baking sheets; cool completely on a wire rack.