Preheat oven to 400 degrees. Lightly grease cookie sheet. Mix granulated sugar, shortening, milk, lemon peel and egg into large bowl. Stir in flour, baking powder, baking soda and salt. Shape dough into 1 1/4 inch balls. Place about 2 inches apart on cookie sheet flatten each about 2 1/2 inches in diameter with greased bottom of a glass dipped in sugar. Bake until edges are light brown, 8-10 minutes. Cool. Spreadn cookie with small amount of frosting. Press on mini marshmallows for a tassel of cap. Sprinkle top 1/3 of cookie with red sugar. Press 2 chocolate chips for eyes and red cinnamon candy for nose into center of cookie. Sprinkle bottom 1/3 with coconut for bread. Frost and decorate each cookie before starting the next.