Cream together 1 cup of sugar, butter, and shortening in a large bowl until light and fluffy.

Beat in the egg, sherry wine, vanilla extract, and anise extract until well combined.

In a separate bowl, whisk together flour, baking powder, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing until just combined.

Divide the dough in half.

Wrap each half in plastic wrap and chill for 30 minutes to 1 hour, or until firm but workable.

Preheat oven to 350°F (175°C).

In a small bowl, combine the cinnamon with the remaining sugar.

On a lightly floured surface, roll out each half of the dough to 1/8 inch thickness.

Cut out desired shapes using cookie cutters.

Re-roll scraps only once to maximize tenderness.

Place cookies on ungreased baking sheets.

Sprinkle generously with the cinnamon-sugar mixture.

Bake for 10 to 12 minutes, or until golden brown around the edges.

Transfer the cookies to wire racks to cool completely.