In a large bowl combine flour, baking powder and salt. Toss lightly with a fork. Add eggs and sugar and mix well. Mixture will be crumbly. Add melted butter, anise flavoring and water. Stir until mixture forms a ball. Transfer to a lightly floured surface and knead 5 minutes or until dough is smooth. Chill one hour. Pinch off a piece of dough about the size of a walnut and roll into a 6 inch rope. Form the rope into a knot and place on a baking sheet sprayed with Pam. Place about 2 inches apart. Bake in a 400 degree oven for 8-10 minutes or until the bottom is pale brown. Cool cookies completely before you glaze.
To make glaze stir milk into confectioners sugar. If glaze is too thick add a few more drops of milk. If too thin add more confectioners sugar. Dip tops of cookies into glaze and dry right side up. If you are using nonpariels wait 1 minute before you sprinkle them on if you sprinkle them on too soon the color will run.
I dip the cookies and then put them on racks with wax paper under the racks to catch the glaze that drips.