In a large mixing bowl, combine flour, baking powder, eggs, sugar, butter, shortening, lemon extract, nutmeg and water. On a floured surface, roll out the dough to 1/2-inch thickness. Cut with a 2 1/2-inch circle biscuit cutter.
Place on a greased baking sheet. Bake in oven for 15 to 25 minutes, or until slightly golden on the edges. Serve.