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In a small bowl, beat cookie dough and flour until combined.
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Roll out on a lightly floured surface to 1/8-in. thickness.
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Cut with a floured 1-3/4-in. x 3-1/4-in. diamond cookie cutter.
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Place 2 in. apart on ungreased baking sheets.
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Bake at 350° for 7-9 minutes or until edges are golden brown.
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Remove to wire racks to cool.
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For one batch of glaze, in a small bowl, combine 3/4 cup confectioners' sugar, 4-1/2 teaspoons milk and 1/4 teaspoon extract.
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Remove 1 tablespoon glaze to another bowl.
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Tint remaining glaze with 3 drops food coloring.
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Working with one cookie at a time, spread red glaze over top half of cookie.
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Place one M&M at top for tassel and four M&M's across edge of glaze for hat brim.
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For ears, place two almonds above M&M's on each end.
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Dip baking bits in plain glaze; place brown bits on cookie for eyes and a red bit for nose. Repeat with 13 more cookies.
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Make second batch of glaze with remaining confectioners' sugar, milk, extract and food coloring.
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Decorate remaining cookies as above.