In bowl, whisk together flour, cinnamon, baking soda and salt; set aside. In cup, fork-beat the egg, 1 tbsp (15 mL) cold water and vanilla; set aside.
In large bowl, using an electric hand mixer on medium speed, beat butter until creamy. Gradually beat in sugar until fluffy. Beat in egg mixture. Gradually beat in flour mixture. Using hands, press mixture into 2 disks of dough. Cover in plastic wrap and chill at least 30 min.
Lightly flour a large sheet of parchment paper. Working with one disk of dough at a time, place onto floured parchment and roll into a 1/8-in. (3-mm) rectangle. Transfer dough (still on parchment) onto a baking sheet or cutting board and chill 15 min.
Meanwhile, preheat oven to 180˚C (350˚F). Line additional baking sheet with parchment paper. Place the chilled rolled dough (still on parchment) onto work surface. Dip 4-in. (10-cm) cookie-cutters into flour and stamp out shapes. Use a skewer to pierce with small holes in cut-outs for stringing, if desired. Pat decorative baking sugars, if using, onto cut-outs. Transfer cut-outs to lined baking sheet.
Bake 8 to 10 min. until cookies are firm and lightly browned on bottoms. Transfer to wire rack to cool completely. Repeat steps for remaining dough, re-rolling scraps as required. Store cookies in airtight container 2 to 3 days.
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