Heat oven to 350 degrees F.
Roll dough out on well-floured surface to 1/4-inch thickness, adding flour as needed to prevent sticking. Using basic pattern, cut out chick shapes, drawing in hats as desired. Reroll scraps; cut out. Place cookies, 1 inch apart, on ungreased baking sheets. Repeat with the remaining dough.
Bake in 350 degree F oven for 10 to 12 minutes or until lightly golden around edges. Cool cookies on baking sheet on wire rack for 5 minutes. Remove cookies to wire rack to cool completely.
Prepare the icing. Reserve 1 cup icing. To remaining icing, stir in water, drop by drop, for good flowing consistency. Tint yellow. Spread over cookies. Let dry until hardened.
Divide remaining 1 cup icing into small batches. Tint with different colors. Decorate cookies as desired. Let dry until hardened.
Using packaged meringue powder, prepare 1 recipe Royal Icing according to package directions. Makes 3 to 4 cups.