In medium bowl, stir together 2 cups flour, baking powder, cinnamon, allspice and salt. Beat flour mixture into margarine mixture alternately with milk, ending with milk. With last addition of milk, add green food coloring until desired color is obtained. Shape dough into ball. Cover and refrigerate 1 hour.
Place cookies on ungreased cookie sheet.
Reroll and cut scraps. Repeat with remaining half of dough. Sprinkle cookies with red or green decorative sugar. Bake 8 to 10 minutes or until edges begin to brown. Remove to wire racks to cool.