1.Grease oven trays; line with baking paper.
2.Beat butter, sugar and egg in small bowl with electric mixer until light and fluffy; transfer to large bowl. Stir in sifted flour.
3.Knead dough on floured surface until smooth. Cover; refrigerate 30 minutes.
4.Preheat oven to 180°C (160°C fan-forced). Roll heaped teaspoons of mixture into 15cm (6-inch) log shapes. Twist two pieces of dough together; shape into canes and wreaths. Place on trays.
5.Bake cookies about 12 minutes. Sprinkle hot cookies with cinnamon sugar; cool on trays.