Tint a portion of dough orange for head. Roll out dough; cut head using smallest round cutter from set and body using hat cutter. Bake and cool.
Attach head to body and 2 in. pieces of licorice for arms and legs with icing. For mittens and boots, roll out spice drops on waxed paper sprinkled with sugar; cut shapes with knife and attach with icing.
Tint portions of royal icing Red-Red/Christmas Red combination, Lemon Yellow, Black and Orange. Ice body smooth; decorate hat with tip 12. Decorate tip 3 outline belt and buckle, dot mouth. Add tip 3 swirl fur trim and beard, bead moustache. Decorate tip 5 dot nose and tip 3 outline eyes.