Preheat oven to 375°.
Combine flour, baking powder, baking soda, and nutmeg; cut in butter with a pastry blender until mixture resembles coarse crumbs.
Combine eggs, sugar, milk, and vanilla; mix well and pour into crumb mixture.
Stir with a fork until all dry ingredients are moistened.
Shape into a ball and wrap in plastic wrap. Refrigerate for 1 hour.
Preheat oven to 375°.
Roll the dough out on a floured board and cut into shapes.
Place on a silicone mat or parchment paper on a cookie sheet and bake at 375° for 10 minutes or until edges are golden brown.