Preheat the oven to 350 degrees. Line 2 baking sheets with parchment paper.
Combine sugar, molasses, and softened butter. Mix until smooth. Add hot water and mix.
Mix in the egg. Add dry ingredients and mix until dough forms. Chill the dough for 25-30 minutes.
Roll a tablespoon-sized scoop of dough into a ball. Use this for the teddy bear bodies. If the dough is still a little sticky, add a bit of flour to your hands.
Roll a tablespoon sized scoop of dough into a ball. Break in half and roll each piece into a ball. Use the smaller balls for the teddy bear heads.
Roll a tablespoon sized scoop of dough into a ball. Break into 8 small sections. Roll each section into balls. Use these small balls for the ears and feet.
Roll a tablespoon sized scoop of dough into a ball. Break into 16 tiny sections. Roll each section into balls. Use these tiny balls for the noses.
GENTLY press a red-hot candy into the center of the teddy bear's body before baking. You don't need to press down far, just enough so that it sticks.Chill cookies on baking sheets for 10 minutes. While one batch is baking, place the second batch in the refrigerator so that it's ready to go.
Bake cookies at 350 degrees for 12 minutes. If the nose is slightly off-center, you can gently push it into place while the cookie is still hot.Let cookies cool completely on the baking sheet to set up.
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Notes
Store cookies in an airtight container for up to 5 days.