In bowl, combine flour, baking powder and salt. Toss lightly with a fork. Add eggs and sugar – mix well, (mixture will be crumbly). Add melted butter, 3 teaspoons anise extract and warm water. Stir until mixture forms a ball. Transfer dough to a lightly floured surface and knead for 5 minutes until dough is smooth. Chill for one hour.
Preheat oven to 400 degrees. Pinch off pieces of dough about the size of large olives and roll into logs. Tie each into a knot shape and place on aluminum foil approximately 2” apart. Slide foil with cookies onto cookie sheets. Bake 8 to 10 minutes or until bottoms are pale brown. When done, slide aluminum foil off cookie sheets and let cookies cool on foil until cool.
Stir milk and remaining two tablespoons anise extract into confectioners sugar. Consistency should be like heavy cream, if needed, add drops of milk. Dip cookies upside down into glaze; turn upright and dry on cookie rack over waxed paper for one minute, than sprinkle with candy sprinkles. Makes about 50 cookies.
Store in a waxed paper lined cookie tin, approximately one week.