Preheat oven to 375 degrees. Lightly spray baking sheets with nonstick cooking spray.
In a large mixing bowl, whisk together, flour, baking powder, and white sugar. Create a well in the center of the flour mixture.
Add the oil, milk, 1 tablespoon anise extract, and eggs to the well and mix together until dough is sticky. Allow the batter to sit for 15 minutes.
Meanwhile, make the icing. In a small mixing bowl, whisk together confectioners sugar, 1 teaspoon anise extract, and just enough hot water to form a smooth icing; set aside.
Oil your fingers and pinch off dough into 1-inch pieces. Roll pieces into a ball and place on the prepared baking sheets, 1 inch apart. Slightly flatten balls with the bottom of a glass.
Bake cookies for about 8 minutes. Dip the cookies in the icing immediately after they come out of the oven. Decorate, with sprinkles, colored sugar, or jimmies while the icing is still wet and unset.