In medium bowl, combine flour, baking powder and baking soda; set aside. In large bowl, Cream shortening, sugar and vanilla. Add eggs and mix well. Add milk. Beat in dry ingredients until dough is well blended. Refrigerate 1 hour or overnight.
Preheat oven to 375 degrees. Lightly grease or spray cookie sheets with cooking spray. Roll out dough on lightly floured surface and cut into shapes. If the dough becomes dry, just knead in shortening a teaspoon at a time until it is soft enough to handle. Place on cookie sheets about 1" apart. Sprinkle cookies with sugar, colored sugar or colored sprinkles. Bake for 7-10 minutes or until edges are lightly browned. Remove from cookie sheets and cool on wire rack.
Variation: Omit sprinkling cookies with sugar before baking. Melt a (12 ounce) package of Hershey's Premier white chips and 2 tablespoons of shortening. Frost cookies with glaze and decorate with sprinkles. Let the glaze harden before storing.