In a large bowl, using a handheld mixer or stand mixer, beat the butter and granulated sugar together on medium-high speed until smooth and creamy, about 3-5 minutes.
In a separate bowl, add one large egg, coconut oil, coconut milk, and vanilla extract. Using a hand whisk or hand mixer, beat egg mixture until thoroughly combined for about 1 minute.
Slowly add egg mixture to beaten butter and sugar. Add little by little and beat on medium speed as you add mixture each time. You may have to add a little up to five times. Adding a little at a time will ensure a smooth mixture without any curdle.
Sift flour, baking powder; add salt,and cinnamon and mix together in a bowl.
Add dry ingredients little by little and mix with a spatula. When all the drying ingredients are added, a dough will form. Then take your hands and form a ball with the dough.At this point, if you try to work with the dough as it is, it will be too soft for you to work with. Chill the dough in the refrigerator for at least 30 minutes. Chilling the dough will give you a firmer dough to work with that can be rolled out and shaped easily. Meanwhile Grease baking sheets (2 – 3) and line with parchment paper. Preheat oven to 350°F (177°C).
Remove the dough from the refrigerator, roll out the dough evenly (about 1/4-inch-thick) on a lightly floured surface. Alternately, you can roll it out between two large sheets of parchment paper. Then cut it into different shapes as you desire.
Once cut use the cookie cutter to lift the cookie onto the lined baking sheets. Place each cookie on the baking sheet leaving a couple of inches around each cookie. Bake until very lightly browned on the edges, about 15 minutes.
Remove the cookies from the oven and allow it to cool on the baking sheet for about 5 minutes before transferring to a wire rack to cool completely.
Melt the chocolate* Chop the chocolate into small chunks and place them in a glass bowl. Put some water over low heat and allow the water to simmer. Place the chocolate over the simmering water and stir until the chocolate is very smooth. You can decorate these with sprinkles, once you dip your cookies into the melted chocolate, this is when you would sprinkle your cookies. Royal Icing* If you want white cookies, you may need to use white chocolate or royal icing. If you are using white chocolate, you can use the same dark chocolate method.If you wish to use icing then here's the steps.2 cups icing sugar (sifted). Add milk little by little until you get the desired consistency, between 2-4 teaspoons. You have to be careful not to add too much milk. Decorate your cookies with the icing and with modestly sweetened green, red, and white sprinkles.Place cookies in the refrigerator for a few minutes until chocolate and or icing hardens. Ready to serve!