Assemble ingredients.
Whisk together the dry ingredients in a bowl.
In a separate small bowl, combine butter and honey until creamed together. Then gently mix into the dry ingredients until a crumbly, soft dough forms.
Using your hands, knead the dough to form a ball, then flatten into a disc and place between two sheets of parchment paper or in plastic wrap and place into the fridge. Chill until the dough is firm, at least 1 hour, up to 2 days.
Preheat the oven to 325ºF and line a baking sheet with parchment paper. Place the disc of dough in a silicone rolling bag or between two sheets of parchment paper lightly sprinkled with arrowroot starch. Using a rolling pin, roll the dough out to around ¼-inch thick, see note. Lightly dust the cookie cutter you plan to use (I used a 2-inch fluted circle) with a little arrowroot starch as well. Remove the top parchment paper and cut out the cookies.
Carefully transfer the cookies to the parchment-lined baking sheet, about 1 inch apart - they spread out very little. A metal spatula dusted with a little arrowroot works well to transfer the cookies. Reroll dough scraps to ¼-inch thickness and cut out additional cookies.
Bake for 12-15 minutes (check at 12; these took 14 minutes in high-altitude Denver) until ever so slightly golden brown on the edges. Watch them carefully so they don't brown too much. They will puff up just a little in the middle.
Allow the cookies to cool for a few minutes on the pan before transferring to a cooling rack to cool completely. If dipping in chocolate, don’t discard the parchment paper yet.
Melt your chocolate and coconut oil using the double boiler method (a bowl over a pan with simmering water) or in small (10-second) bursts in the microwave, see note. Stir vigorously until the chocolate is smooth and slightly cooled; stirring makes it glossier.
Dip each cookie into the melted chocolate and transfer to parchment to cool. Drop the sprinkles over each cookie right after you dip it. Let the chocolate cool completely - this will keep it from sticking to the parchment. Once cooled, store in an air-tight container in the fridge.