In the bowl of a countertop mixer with the paddle attached, beat the shortening and butter until well combined.
Gradually add the granulated and dark brown sugars. Beat until well combined.
Add eggs and beat until absorbed fully.
Add pudding mix and vanilla. Beat until well combined.
In another bowl, combine the flour, nutmeg, cinnamon, salt, baking soda, cornstarch, and cinnamon chips (of using). Stir by hand until well mixed.
In 3 separate additions, add the dry ingredients to butter mixture. Beat each addition until well blended before adding next addition.
Scrape sides and bottom of bowl and mix until well combined.
Using approximately 2 Tbsp of dough, shape into round balls.
In a small bowl, combine the cinnamon and sugar for the Cinnamon Sugar coating. Roll each ball of dough in the cinnamon-sugar mixture and place onto parchment lined sheet pan. Flatten balls slightly by hand or with the back of large spoon. Sprinkle a little of the remaining cinnamon-sugar mixture on top of each cookie.
Bake at 375 for 10-12 minutes or until edges of the cookies begin to turn slightly brown. (Don't overcook or the cookies will be too hard!)