Preheat oven to 350 degrees. In a small bowl, dissolve espresso powder in the water. Set aside. In a medium bowl, whisk together flour, cocoa powder, nutmeg, and salt until well blended.
In a large bowl, beat together the butter, sugar, egg, and vanilla on medium speed until light and fluffy, about 3 minutes. Beat in the dissolved espresso. Stir the flour mixture into the butter mixture until well blended.
Spoon dough into a cookie press and press cookies out onto ungreased baking sheets. Bake for about 12 minutes, or until dry. Transfer to wire racks to cool completely.
In a small bowl, stir together ⅓ cup of the powdered sugar and 1 teaspoon of the water until smooth and a good drizzling consistency.
In a second bowl, whisk together the remaining ⅓ cup powdered sugar, 1 teaspoon water, and red food coloring until smooth, evenly colored, and a good drizzling consistency.
Spoon each color into a self-closing plastic bag. Snip off a tiny corner of each bag, and drizzle both colors over cookies. Let the cookies stand at room temperature until the glazes are dry. Store in an airtight container at room temperature for up to one week.