As a rule of thumb, assume the variable to not have the appending capabilites you see with $1. Almost all do not have the capability, with few exceptions. Whenever you wish to prefix ro append a value to an identifier, use either $+() (concatenation identifier) or the $+'s. Using your eexample, the following would also be acceptable:
alias cookie { say Don't eat $1's cookie }
alias cookie { say Don't eat $1 $+ 's cookie }
alias cookie { say Don't eat $+($1,'s) cookie }
The exceptions (generally) to these however are as follows:
Token identifiers - $1, $2, 3, ....
Directories -- $mircdir, $mididir, $mircexe, $mircini, etc
There are a few others, but just to give you the idea.
So again, to make your problem go away, use either $me $+ <text> or $+($me,<text>)
