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1. Beat shortening in a mixing bowl with an electric mixer on medium to high speed for 30 seconds. Add sugar, baking powder, and salt; beat until combined, scraping sides of bowl occasionally. Beat in egg, milk, and vanilla until combined. Beat in as much of the flour as you can with the mixer. Stir in remaining flour with a wooden spoon. Divide dough into thirds. If necessary, cover and chill about 3 hours or until dough is easy to handle.
2. Roll one-third of the dough at a time on a lightly floured surface to 1/4-inch thickness. Cut with 3-1/4- and 2-1/4-inch scalloped cookie cutters, making an equal number of each. Place cutouts on an ungreased cookie sheet. Cut the center from each 3-1/4-inch cutout using a 1-1/4-inch scalloped cutter. Cut the center from each 2-1/4-inch cutout using a 1-inch scalloped cutter. Sprinkle cutouts with colored sugar, granulated sugar, or a combination of sugars.
3. Bake in a 375 degree F oven for 6 to 8 minutes or until edges are firm and bottoms are very lightly browned. Transfer to wire racks and cool.
4. To assemble, place a small wreath on top of each large wreath; tie wreaths together with ribbon. Tie ribbon into a loop large enough to hang on a tree. Makes about 36.