Preheat the oven to 425°F (220°C).
Cream together the sugar and butter using a hand mixer.
Mix in the sour cream, milk, and vanilla extract until smooth.
Add baking powder, salt, and pumpkin pie spice; mix well.
Gradually add flour, one cup at a time, mixing until dough is crumbly. Fold in dried cranberries and diced apples, then chill for 20 minutes.
Roll out the dough on parchment paper to about 1/2 inch thick and cut out shapes with a cookie cutter.
Cut an "X" in the tops and brush with milk; optionally decorate with dried fruit.
Bake for 12 minutes, brush again with milk, sprinkle sugar, and bake for an additional 11-14 minutes until golden. Let cool before serving.