In a large bowl, whisk together flour, baking powder, salt, nutmeg, and cinnamon.
In a separate large bowl, using a mixer, beat the butter, apple butter, brown sugar, and 1 cup granulated sugar until fluffy, about 3 minutes.
Add vanilla extract to the butter mixture, then eggs one at a time, fully incorporating after each addition.
Gradually add the dry ingredients to the wet ingredients, mixing until just combined. Let the dough chill in the refrigerator for about 10-15 minutes.
Form dough into balls, roll in the remaining 1/4 cup sugar, and place on prepared baking sheets.
Bake in a preheated 350°F oven for 12 minutes, or until edges are golden. Allow to cool on the baking sheet for 2 minutes before transferring to a wire rack.