Sift together flour, baking soda, baking powder, salt, and nutmeg; set aside.
Cream butter with sugar until light and fluffy. Add eggs, one at a time, beating well after each addition. Add vanilla. Add dry ingredients alternately with sour cream, mixing well after each addition. Chill dough at least 1 hour.
Preheat oven to 375 degrees. Roll out dough 1/4-inch thick on a floured board. Cut into 3-inch rounds. Place on ungreased cookie sheet; sprinkle with sugar. Bake about 12 minutes.
Makes about 5 dozenRecipe submitted by Joyce on 11/11/00