Preheat oven to 375°F. Line two baking sheets with parchment paper and set aside.
In a large bowl, cream together the butter and sugar until light and fluffy, about 3 minutes. Add the egg and vanilla and beat until incorporated. Stir in the flour, baking powder and salt, mixing until just combined. Transfer the dough to a large piping bag fitted with a large star tip.
Pipe out the dough into 3 or 4-inch logs on the prepared baking sheets, making sure to leave about 2-inches of space in between each. Bake until lightly golden brown around the edges, about 8 to 10 minutes.
Remove from the oven and allow to cool slightly on baking sheets before moving to wire racks to cool completely.
In a shallow bowl, whisk together the granulated sugar, cinnamon and chili powder (if using). In a separate shallow bowl, whisk together the powdered sugar with 1/2 cup hot water. This mixture will be runny.
Carefully dip the top of each cooled cookie into the glaze mixture and then dip into the cinnamon sugar mixture to fully coat. Place on a baking sheet or a wire rack and continue dipping the rest of the cookies. Allow to sit for about half an hour to fully set before serving.
To make the chocolate dipping sauce, heat the cream over low heat or in the microwave until hot. Pour over the chocolate chips and allow to sit for 5 minutes before stirring until melted and smooth. Either dip cookies into the chocolate and serve or arrange cookies on a platter with the dipping sauce on the side. Enjoy!