In the bowl of an electric mixer fitted with the paddle attachment, mix 1 cup sugar and the lard on medium-high speed until light and fluffy, about 3 minutes. Add egg; beat to combine.
Sift flour, baking powder, and salt. Gradually beat flour mixture into sugar mixture on low speed. Beat in anise seeds. On medium speed, gradually add 2 teaspoons water or more to form a ball. Wrap dough in plastic wrap; chill 30 minutes.
Preheat oven to 350 F with a rack in center. Combine cinnamon and remaining 3/4 cup sugar in a small bowl (or you can use premixed cinnamon sugar that comes in a bottle from the grocery store’s spice aisle).
On a floured surface, roll the dough into 1/4 inch thick. Cut dough into moons, stars, or shapes you like with a 2″ cutter; lightly sift cinnamon sugar over each shape. Please on parchment-lined baking sheets. Bake 12-14 minutes. Cookies should be set but not brown. Transfer to a wire rack to cool. Repeat with the remaining batches.
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