Makes: 3 to 3 1/2 dozen. Prep: 25 minutes. Bake: at 400° for 10 minutes.
Heat oven to 400°F.
Sift the flour, baking powder and salt into a bowl.
Beat butter, shortening and sugar at low speed in a large bowl for 2 minutes. Scrape down sides of bowl. Continue beating at medium-low speed until fluffy, about 2 minutes. Beat in anise seeds and egg. At low speed, beat in flour mixture, then enough water to make stiff dough.
Roll one-half of dough at a time on lightly floured pastry surface to 1/4-inch thickness. Cut into rounds and stars with floured 2- to 2-1/2-inch cutters. Place cookies 1 inch apart on ungreased baking sheets.
Bake in 400°F oven until pale tan or for about 10 minutes. Lift cookies at once from baking sheets; coat both sides with cinnamon-sugar. Place coated cookies on wire racks and let cool to room temperature. Store in airtight containers.