In large mixing bowl, combine butter, sugar and egg. Beat at medium speed, scraping sides of bowl often until light and fluffy (3 to 5 minutes). Stir in vanilla. On low speed, gradually add flour and nutmeg. Force dough through cookie press on ungreased cookie sheets (no foil). Bake at 350F for 8 to 9 minutes until very lightly browned on edges. Dip tops of cookies in glaze.
To make glaze, in a small saucepan melt butter, remove from heat. Stir in sugar, water and flavoring. If it gets too thick, add a little more water. Glaze may need to be doubled to coat all the cookies.