PREPARATION:

1. Beat butter and sugar in large bowl with electric mixer at medium speed until creamy. Beat in egg until light and fluffy. Mix in flour, lemon juice, lemon peel, baking powder and salt. Wrap in plastic wrap; refrigerate about 2 hours or until firm.
2. Preheat oven to 350°F. Roll dough, a small portion at a time, on well-floured surface to 1/4-inch thickness. (Keep remaining dough in refrigerator.) Cut dough with 3-inch round or fluted cookie cutter. Transfer cutouts to ungreased cookie sheets. Sprinkle with sugar.
3. Bake 8 to 10 minutes or until edges are lightly browned. Cool 1 minute on cookie sheets. Remove to wire racks; cool completely. Store in airtight container.