In a large bowl, stir together flour, baking powder, baking soda, and nutmeg. Set aside.
In a large mixing bowel, beat butter on medium speed for 30 seconds, or until soft.
Add sugar and beat until fluffy.
Add egg and beat well.
All flour mixture and eggnot alternately, beating until well mixed.
Cover and chill for at least 4 hours or overnight.
Working with 1/2 the dough at a time, on a floured surface, roll rounded tablespoon-fulls of the dough into pencil-like strips, about 8" long and 1/2" thick. (Keep remaining dough chilled). On an ungreased cookie sheet, loop one end of the strip over the other ent to form an oval with two ends overlapping.
Bake at 350 for 6-8 min or until edges turn light brown. Transfer to wire rack to cool.
Dust with sifted powdered sugar/nutmeg