Combine sugar and butter in bowl. Beat at medium speed, scraping bowl often, until creamy. Add honey and egg yolk; continue beating until well mixed. Add flour and baking powder; beat at low speed, scraping bowl often, just until mixed.
Divide dough in half; wrap in plastic food wrap. Refrigerate at least 1 hour or until firm.
Heat oven to 400°F.
Roll out dough on lightly floured surface, one-half at a time (keeping remaining dough refrigerated), to 1/8-inch thickness. Cut with 2 1/2-inch cookie cutters. Place 1 inch apart on ungreased cookie sheets. Sprinkle with decorator sugars, if desired.
Bake 7-12 minutes or until edges are lightly browned. Cool 1 minute on cookie sheets; remove to cooling rack. Cool completely. Decorate with frosting, if desired.
Traditional cookie cutters include Menorah, Dreidel and Star of David.