Beat sugar and butter with a hand mixer until light and fluffy. Add vanilla and eggs little by little. Add dry ingredients. Knead dough by hand and work in more flour if necessary. Dough should be stiff. Roll out dough with a rolling pin and cut out cookies with 3-4 inch circle cookie cutter.
Place on parchment lined cookie sheet. Bake at 350 degrees F for 12-15 minutes. Once cooled place stencil on top and shake powdered sugar over it.