Add butter and sugar in a large bowl. Now with an electric whisk beat together butter and sugar until creamy.
Then add in the all purpose flour, thandai powder, vanilla extract and 2 tbsp of milk. Now with a spatula gently bring the dough together. If you think the dough is a bit dry add few drops of milk at a time and bring gently bring it together with your hands.
Add the funfetti and give it a good mix.
Shape the dough into a disc and wrap in a cling film. and refrigerate for 30 minutes.
Preheat the oven to 175° C and line a baking tin with baking paper.
Remove the disc from the refrigerator and place them in between 2 parchment paper and roll it out into 1/4th inch thickness.
Sprinkle with some more funfetti and gently press it. Cut out with desired shape using a cookie cutter (I used 1 1/2-2 inch cookie cutter).
Transfer the cookies onto a baking sheet and keep them at least 2 inch apart.
Bake for 12-15 minutes. Bake until crispy and lightly browned from the bottom.
Cool in the baking tray for 5 minutes and then transfer them on a wire rack to cool completely. Keep it in an airtight container for 2 weeks.