In a sauce pan, combine the 1 cup of water with anise and cinnamon stick. Bring up to a boil at medium heat. Remove from heat and let steep.
In a large bowl, add the 3 1/2 cups of flour, sugar, baking powder and salt. Cut in the shortening until you have small crumbles. Press some of the mixture in the palm of your hand. If it stays together, then it's ready. If its still crumbly, mix in a little more shortening.
Strain the cinnamon/anise tea. Gradually mix the tea into the flour mixture. I only needed 4 oz, but may vary from time to time. Knead until dough comes together and feels mostly smooth. Cover with plastic wrap and let rest for 30 minutes.
To Assemble: When filling is cool and dough has rested, form 29 dough balls. Each weighs about 26 grams, more or less. Cover with plastic and set aside.
Preheat the oven to 375ºF. Take one dough ball at a time and press in tortilla press lined with plastic storage bag or wax paper. Or you could roll out the dough on a flat surface. Fill with 1½ to 2 tablespoons of filling, fold over, and using a fork, or your fingers, pinch and fold over edges together , creating a braid look that seals empanada.
Transfer empanadas to a greased baking sheet and bake for 18-21 minutes or until light golden brown on the edges. While the empanadas are still slightly warm, roll in a cinnamon/sugar mixture. Once cooled, transfer to storage container with a tight lid. Empanadas will soften after a few hours. Yields 24 to 28 small empanadas.