In a medium bowl, cream the butter and sugar together. Stir in eggs, and beat well. Sift together the flour, baking powder and nutmeg. Add dry ingredients to the creamed mixture alternately with the milk. Divide dough in half. Cover and chill for 1 hour.
Preheat oven to 350 degrees F (175 degrees C). Grease cookie sheets or line with parchment paper.
On a lightly floured surface, roll out the dough to 1/4 inch thickness. Cut with cookie cutters and place onto the prepared cookie sheets. Bake for 8 minutes in the preheated oven, cookies should brown slightly.