Beat butter, sugar, pudding, and egg in large bowl with electric mixer on speed until well blended. Combine remaining ingredients. Gradually add to the pudding mixture, beating until well blended. Refrigerate 1 hour or until dough is firm.
Roll out on lightly floured surface to a 1/4 inch thickness. Use a 4-inch gingerbread man cookie cutter to cut out the dough. Place cutouts on a greased sheet. Use a straw to make a hole near the top of each cookie for hanging.
Bake at 350°F for 10 to 12 minutes or until edges are lightly browned. Remove from sheets. Cool on wire racks. Decorate as desired.