Combine flour, baking powder, 1 teaspoon cinnamon and nutmeg in medium bowl. Set aside.
Combine butter and 3/4 cup sugar in large mixer bowl. Beat at medium speed, scraping bowl often, until creamy (1 to 2 minutes). Add eggs and vanilla; continue beating until well mixed (1 minute). Reduce speed to low; add flour mixture. Beat until well mixed (1 to 2 minutes). Cover; refrigerate until firm (3 to 4 hours).
Heat oven to 375°F Combine 1 cup sugar and 1/2 teaspoon cinnamon in small bowl. Shape rounded teaspoonfuls of dough into 1-inch balls. Roll in sugar mixture. Place 2 inches apart onto ungreased cookie sheet. Bake for 9 to 11 minutes or until set.
Roll in sugar-cinnamon mixture again while warm, if desired.