Preheat oven to 350ºF.
Prepare a baking sheet by lining it with parchment paper. Set aside.
In a large mixing bowl, cream butter and powdered sugar together for about 2 minutes or until creamy.
Add flour and beat again. Dough will be powder-like, however, it will take shape after beating for about 2-3 minutes.
Form 1-inch balls of dough and place them on your prepared baking sheet.
Using a flat-bottom glass lightly spray with cooking spray, flatten dough balls until they are about 1⁄4-inch thick.
Bake cookies for 15-18 minutes or until slightly golden brown.
To prepare frosting, whisk powdered sugar, milk, and vanilla together. (If icing is too thick, add more milk. If icing is too thin, add more powdered sugar.)
Dip cooled cookies into icing. Allow excess icing to drip off.
Allow icing to harden.
Add laces with red frosting.