PREPARATION:

1. Beat butter in large bowl with electric mixer at medium speed until smooth. Add sugar; beat until well blended. Add egg, lemon juice and peel; beat until well blended.
2. Combine flour, baking powder, salt and nutmeg in large bowl. Gradually add flour mixture to butter mixture at low speed, blending well after each addition.
3. Shape dough into 2 logs, each about 1-1/2 inches in diameter and 6-1/2 inches long. Roll logs in yellow sugar, if desired. Wrap each log in plastic wrap. Refrigerate 2 to 3 hours or up to 3 days.
4. Preheat oven to 350°F. Grease cookie sheets. Cut logs into 1/4-inch-thick slices; place 1 inch apart on cookie sheets.
5. Bake about 15 minutes or until edges are lightly browned. Transfer to wire racks to cool. Store in airtight container.