Preheat oven to 350 degrees.
Beat the lard or shortening until creamy with a stand mixer outfitted with a paddle attachment. Gradually add 1 cup of the sugar, beating well. Stir in the anise seed. Add the eggs, one at a time, and beat until fluffy.
Whisk together the flour, baking powder, and salt. Gradually stir the flour mixture into the lard (shortening) mixture. The dough will look crumbly at this point, but don't worry: it will come together in the next step.
Add 1/4 cup of water, white wine or dry sherry to the mixture. Stir at low speed until the dough is well-mixed and smooth.
Dump the dough out onto a floured surface, and roll to 1/4" thickness. Use cookie cutters to cut out festive shapes. Place the cut-out cookies onto a parchment-lined baking sheet
Mix together the remaining 1/2 cup of sugar with the cinnamon. Sprinkle the cookies with the cinnamon-sugar mixture. Bake for 8-10 minutes, until cookies are set and lightly browned.