I'd go with a small cookie cutter. Don't use ones with long extensions such as tails or elephants' trunks, or most of the cookies will break. Cookware stores usually have a nice selection, and you can remodel the cutters slightly if you want.
Chill the dough, and roll it out to an even thickness, about 1/8th to 1/4th of an inch depending on the size of the cookie. Use the cookie cutters to cut out the cookies, wasting as little of the dough as possible. (Each time you re-roll the dough, it can get a little tougher.). With a flat pancake turner, transfer the cookies to a baking sheet, allowing room for the cookies to spread as they bake.
Bake at 350° just until the edges start to turn light tan. Allow them to cool slightly so each one stays in one piece, and then transfer to a rack to finish cooling. When completely cool, they can be decorated with frosting, sprinkles, etc.