Preheat the oven to 350°F (175°C) and line a baking sheet with parchment paper.
In a bowl, whisk together the flour, baking soda, salt, and spices.
In a separate bowl, cream the butter and sugars until light and fluffy. Beat in the egg, molasses, and vanilla.
Gradually add the dry ingredients to the wet ingredients and mix until combined.
Roll the dough into 1-inch balls and place them on the prepared baking sheet.
Bake for 12-15 minutes, or until the cookies are firm to the touch.
Allow the cookies to cool slightly, then roll them in powdered sugar while they're still warm.
Prepare the icing
Sift the powdered sugar into a medium bowl to remove any lumps.
Add 3 tablespoons of milk or water and whisk until smooth.
Check the consistency: The icing should be thick enough to coat the back of a spoon but still flow easily. If it’s too thick, add more milk or water, one teaspoon at a time, until the desired consistency is reached.
Coat the cookies: Once the Pfeffernüsse cookies have cooled completely, dip the top of each cookie into the icing. Lift the cookie and gently shake off any excess icing.
Let the icing set: Place the cookie’s icing side up on a wire rack with parchment paper underneath to catch drips.
Allow the icing to harden completely at room temperature, which may take 1–2 hours.
Notes
Make sure to roll cookies in powdered sugar while they’re still warm for the best coating.