In a mixing bowl, combine flour, baking powder, soda, salt and nutmeg; set aside.
In a large mixing bowl, beat the shortening with an electric mixer for 30 seconds. Beat in the 2 cups sugar till combined. Add eggs, vanilla and lemon extract, if you like; beat well.
Add flour mixture and buttermilk alternately to the shortening mixture, beating till well mixed. Divide in half. Cover and chill for at least 3 hours or till the dough is easy to handle.
For large cookies, roll out dough, half at a time, to 3/8-inch thickness. Cut into rounds with 3-inch cookie cutter. For small cookies, roll dough to 1/4-inch thickness and cut with a 2-inch cutter. Place 2-1/2 inches apart on an ungreased cookie sheet. Sprinkle with more sugar.
Bake in 375 degree F oven 9 to 11 minutes or till bottoms are lightly browned. Transfer cookies to wire racks to cool.