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Mix flour, baking soda, cinnamon, nutmeg and salt in medium bowl. Set aside. Beat sugar and butter in large bowl with electric mixer on medium speed until light and fluffy. Add egg and vanilla; mix well. Gradually stir in flour mixture on low speed until well mixed. Refrigerate 2 hours or until firm.
Preheat oven to 375°F. Roll dough on generously floured surface to 1/4-inch thickness. Cut out shapes with holiday cookie cutters. Place on ungreased baking sheets.
Bake 8 to 10 minutes or until lightly browned. Cool on baking sheets 1 minute. Remove to wire racks; cool completely.
Spoon 1 container of the frosting into medium microwavable bowl. Microwave on HIGH 20 to 30 seconds, stirring every 10 seconds. (Frosting should be a pourable consistency.) Dip tops of cookies into frosting. Microwave remaining container of frosting as needed. Place frosted cookies on wire rack set over foil-covered baking sheet. (The baking sheet will catch drips.) Let stand 10 minutes or until frosting is dried.
Prepare desired colors of Holiday Flavor Paints (see below). Using small clean paint brushes, paint designs on cookies.
Holiday Flavor Paints: Winter Sky: 1/2 teaspoon McCormick® Pure Lemon Extract and 2 drops McCormick® Blue Food Color. Holly Berry: 1/2 teaspoon McCormick® Pure Vanilla Extract and 1/4 teaspoon McCormick® Red Food Color. Rosy Cheeks: 1/2 teaspoon McCormick® Pure Vanilla Extract and 5 drops McCormick® Red Food Color. Coal: 1/2 teaspoon McCormick® Pure Vanilla Extract and 1/4 teaspoon McCormick® Black Food Color. Evergreen: 1/2 teaspoon McCormick® Pure Lemon Extract and 1/4 teaspoon McCormick® Green Food Color. Candle Light Yellow: 1/2 teaspoon McCormick® Pure Lemon Extract and 1/4 teaspoon McCormick® Yellow Food Color. Tinsel: 1/2 teaspoon McCormick® Pure Vanilla Extract and 1 drop McCormick® Black Food Color.