Add the crystallized ginger and 1/3 cup sugar to a food processor (you could use a blender for this step if you don’t have a food processor). Pulse until finely ground. Pour into a bowl.
Add the butter and 1/3 cup sugar to the food processor. (I don’t wash out the bowl.) Whirl until light and fluffy.
Whirl until light and fluffy.
Add the ginger mixture, molasses, and egg. Run until smooth.
In a bowl, whisk flour, baking soda, ginger, cinnamon, and nutmeg.
Add the flour mixture to the food processor and run until the dough comes together. Cover with plastic wrap and chill for one hour.
Roll the dough into 1-inch balls and coat in sugar. I used a mixture of regular sugar and sanding sugar. Place the balls 2 inches apart on parchment-lined baking sheets. I got about 36 cookies out of this.
Bake in a preheated 350 degree oven for 12 to 15 minutes. Cool on a rack.