Southern Tea Cakes are soft, lightly sweet cookies that sit somewhere between a biscuit and a sugar cookie. This is a truly simple recipe with common pantry ingredients.
Preheat the oven to 400°F. Line two baking sheets with parchment paper.
Sift the flour (with baking powder, baking soda, and salt if using all-purpose flour) into a large bowl.
In a second bowl, whisk together the eggs, granulated sugar, melted butter, milk, vanilla extract, and nutmeg or cinnamon if using, until smooth.
Pour the wet ingredients into the dry ingredients. Stir just until combined; do not overwork the dough.
The dough will be sticky. Either turn it out onto a lightly floured surface and cut rounds with a biscuit cutter or cookie cutter, or lightly flour your hands, pinch off small pieces, roll each into a ball, and drop it onto the baking sheet, patting it down gently with your fingertips.
Fold in chopped nuts at this stage if using.
Bake for 7 to 9 minutes, until the edges turn golden brown.
Transfer the tea cakes to wire racks to cool completely.
Dust with powdered sugar before serving if desired.