Sift together the flour, baking powder, baking soda, salt and nutmeg; set aside. In a large bowl, cream together the butter and sugar until smooth. Beat in the egg, vanilla and sour cream until well blended. Stir in the sifted ingredients. Wrap dough in plastic wrap and chill overnight.
Preheat the oven to 375 degrees F (190 degrees C). On a lightly floured surface, roll the dough out to 1/4 inch in thickness. Cut into desired shapes with cookie cutters. Place cookies 1 1/2 inches apart onto ungreased cookie sheets.
Bake for 8 to 10 minutes in the preheated oven. Allow cookies to cool on baking sheet for 5 minutes before removing to a wire rack to cool completely.
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