1) Beat the oil, butter, and sugars together until fairly smooth; a few lumps of butter may remain.
2) Add the egg, beating until smooth. Beat in the extracts and nutmeg.
3) Stir in the dry ingredients, again beating until smooth.
4) Cover the bowl and refrigerate the dough for at least 2 hours, until it's stiff enough to scoop easily and hold its shape; overnight is fine.
5) Just before shaping the cookies, preheat your oven to 350°F. Lightly grease (or line with parchment) 2 or 3 baking sheets.
6) Place some granulated sugar or coarse white sparkling sugar in a shallow pan, and scoop the chilled dough by the tablespoonful into the sugar, rolling to coat. Roll each ball into a round in your palms. The dough softens quickly; refrigerate it between batches.
7) Place the cookies on the prepared baking sheets.
8) Bake the cookies for about 13 minutes, until their edges are just beginning to brown. Bake slightly longer for a crisper cookie.
9) Remove the cookies from the oven, and cool on the pan for at least 10 minutes before transferring to a rack to cool completely.
10) As soon as the cookies are completely cool, store them airtight, to retain their crunchy texture. For soft cookies, allow them to rest uncovered overnight before wrapping and storing.
Yield: 2 1/2 dozen 3" cookies.