1Heat oven to 325°F. In large bowl, beat granulated sugar, shortening, butter, lemon peel and egg with electric mixer on medium speed, or mix with spoon. Stir in flour, baking powder and salt.
2On lightly floured surface, roll half of dough at a time to 1/4-inch thickness. Cut with 6- to 8-inch star-shaped cookie cutter (or make your own 6- to 8-inch cardboard star pattern, place on dough and cut around pattern with small sharp knife). On ungreased cookie sheet, place cutouts 2 inches apart. Carefully insert 1 inch of craft stick into side of each cookie.
3Bake 15 to 18 minutes or until light brown. Cool 2 minutes; carefully remove from cookie sheet to cooling rack. Cool completely.
4In small bowl, mix powdered sugar, vanilla and hot water until smooth and thin enough to drizzle. Spread glaze over cookies. Decorate as desired with icing, sprinkles and colored sugar.