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Preheat oven to 350 degrees F (175 degrees C).
Cream together the butter, sugar, salt, nutmeg and egg yolk. Add the flour a little at a time until mixture is stiff.
Place onto floured board and knead lightly until the dough begins to crack. Roll out 1/4 inch thickness and cut into desired shapes.
Place on un-greased cookie sheet, decorate with colored sugar crystals and maraschino cherries.
Bake for 10 minutes or until golden brown.
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