Lightly spray a cookie sheet with nonstick coating; set aside.
Beat the 1 cup sugar and butter or margarine in a large mixing bowl with an electric mixer on medium to high speed for 30 seconds. Add sour cream, egg product, and vanilla. Beat till just combined. Combine flour, baking powder, nutmeg, and baking soda in a small bowl. Gradually add flour mixture to sour cream mixture, beating till just combined. Cover and chill for 4 to 24 hours or till easy to handle.
Shape dough into 1-inch balls. Combine the 2 tablespoons sugar and cocoa powder. Roll balls in sugar-cocoa mixture. Place 2 inches apart on prepared cookie sheet. Bake in a 375 degrees oven for 10 to 11 minutes or till edges are golden. Cool cookies on a wire rack.