Step 1

Heat oven to 350°F.

Step 2

Combine flour and baking soda. Beat butter and granulated sugar in large bowl with hand mixer until light and fluffy. Blend in dry pudding mix and egg. Gradually add flour mixture, mixing well after each addition. Transfer dough to lightly floured surface; mix with your hands until ingredients are well blended and come together to form smooth ball.

Step 3

Divide dough into 4 pieces; roll each into ball. Flatten each slightly into disk. Roll out dough, 1 disk at a time, on lightly floured surface to 1/4-inch thickness; cut into sweater shapes with 2-inch cookie cutter, rerolling scraps as necessary.

Step 4

Place, 2 inches apart, on parchment-covered baking sheets.

Step 5

Bake 10 to 12 min. or until edges are lightly browned. Cool on baking sheets 1 min. Remove to wire racks; cool completely.

Step 6

Mix powdered sugar, water and meringue powder until blended. Spoon into separate bowls to match desired number of colored frostings. Tint frosting in each bowl with desired food colorings. Spoon frosting from 1 bowl into piping bag fitted with small piping tip, such as a number 2, 3, or Repeat with remaining frostings to fill additional piping bags fitted with small piping tips.

Step 7

Use piping bags to pipe line of frosting around edge of each cookie, then gently squeeze frosting back and forth over top of cookie to cover with frosting. Decorate with sprinkles as desired. Let stand until frosting is firm.