Preheat the oven to 400˚F. Line two cookie sheets with parchment paper.
Add flour and baking powder to a medium mixing bowl and whisk to combine. Set aside.
In a large bowl, beat butter and sugar with an electric mixer on medium speed until fluffy, about 5 minutes.
Beat in eggs one at a time, add 1 tablespoon of anise extract and anise seeds, and mix until well blended.
Add the flour mixture a little at a time, and mix until well blended. The dough will be soft and sticky.
Drop rounded tablespoons of dough 2 inches apart onto the prepared baking sheets.
Bake 5 to 7 minutes until bottoms are golden brown and the cookie springs back when pressed with your finger.
Remove the cookies from the baking sheets to a wire rack to cool.
To make the glaze, whisk together the powdered sugar, milk, and 1/4 teaspoon anise extract in a small bowl until smooth.
Place the cooling rack of cookies on the cookie sheet to catch drips and the extra sprinkles.
Grab one cookie, dip the top into the glaze, put it back on the rack, and add the sprinkles right away before the icing begins to harden.
Repeat with the remaining cookies, and then let the cookies sit until the glaze is hard.
Store in an airtight container at room temperature for up to 2 weeks. The recipe makes about 32 cookies.