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Beat 1 cup sugar and butter (or margarine) in a large mixing bowl with an electric mixer on medium to high speed for 30 seconds. Add sour cream, egg and vanilla. Beat until just combined. Combine flour, baking powder, nutmeg and baking soda in a small bowl. Gradually add flour mixture to sour cream mixture, beating till just combined. Cover and chill for 4 to 24 hours or till easy to handle.
Preheat oven to 375°F. Lightly spray a cookie sheet with cooking spray; set aside. Shape dough into 1-inch balls. Combine the remaining 2 tablespoons sugar and cocoa powder. Roll balls in sugar-cocoa mixture. Place 2 inches apart on prepared cookie sheet. Bake for 10 to 11 minutes or till edges are golden. Cool cookies on a wire rack.