Instructions:
Coat your work surface in flour and roll the dough out to 1/4 inch. Use very small cookie cutters in charming shapes to make many tiny cookies. Put them on greased cookie sheets (using a spatula), and re-roll scraps and extra dough until all dough is used up. Bake for six to eight minutes and let them cool on the trays. Do not attempt to ice the cookies until they are quite cool.
Make the icing by sifting the powdered sugar into a bowl and then mixing in the water. Use the resulting sweet mix to ice half your cookies, and if you so desire add a couple drops of red food coloring to the rest and then ice the rest of the cookies with that.
These are great finger foods for little parties because the cookies are so tiny and there are so many! Here's a comparison shot with the cookies and my hand so you can see how cute they are: