Combine sugar and butter in a bowl. Beat at medium speed, scraping the bowl often, until creamy.
Add egg, molasses, and vanilla; continue beating until well mixed. Add all remaining ingredients (except powdered sugar), beat at low speed until well mixed.
Divide the dough into thirds. Shape each third into a round ball; flatten to approximately 1/2-inch thickness. Wrap in plastic wrap. Refrigerate 1-2 hours until firm or up to 3 days. I refrigerated my dough for 24 hours.
Heat oven to 375 F
Roll out dough on a lightly floured surface, one-third at a time (keeping remaining dough refrigerated), to approximately 1/8-inch thickness.
Cut with 2 to 3-inch star cookie cutters(s). Place 1-inch apart onto ungreased cookie sheets. Bake 5 to 7 minutes or until set. Cool 1 minute on cookie sheet; remove to a cooling rack.
Cool completely. Sift powdered sugar over cooled cookies, optional.