1Heat oven to 375°F (350°F for dark or nonstick pans). In large bowl, beat all ingredients with electric mixer on medium speed about 1 minute or until thoroughly mixed.
2Divide dough in half. On lightly floured surface, roll each half of dough 1/4 inch thick using cloth-covered rolling pin. With 2 1/2-inch cookie cutters, cut into desired shapes. Cut designs in cookies with sharp knife if desired. On ungreased cookie sheets, place shapes.
3Bake 6 to 8 minutes or just until set (centers will be soft). Cool 1 minute. Immediately make hole in tops of some cookies, using end of plastic straw; trim any cut edges with sharp knife to straighten. Remove from cookie sheets to cooling racks. Cool completely.
4Tie ribbon or yarn through holes to hang. Hang ornaments on tree branches anchored in a pot or on Halloween tree (available at craft stores). Decorate remaining cookies as desired, and store covered.