Preheat oven to 375°.
Cream shortening; gradually add sugar, beating well at medium speed of an electric mixer.
Add egg, and beat well.
Add vanilla and orange rind and mix well.
Combine flour, baking powder, soda, and salt. Add to creamed mixture alternately with milk, mixing well after each addition.
Roll dough to ¼" thickness on a lightly floured surface.
Cut with cookie cutters and place on a cookie sheet lined with parchment paper.
Sprinkle the tops of the cookies with the colored sugar and gently press into the cookie.
Bake for 7 minutes until light brown. Let cool on cookie sheet for 3 minutes then move to wire rack to cool completely.