In a large bowl, cream butter and sugar until light and fluffy, 5 to 7 minutes. Beat in extract; gradually add flour until dough forms a ball. Cover and refrigerate until dough is easy to handle, about 1 hour. , Preheat oven to 350°. Roll into 1-in. balls. Place 1 in. apart on ungreased baking sheets. Using the end of a wooden spoon handle, make an indentation in the center. Fill with jam., Bake until edges are lightly browned, 14-18 minutes. Remove to wire racks to cool completely. , If desired, spoon additional jam into cookies. Combine confectioners' sugar, extract and enough water to achieve drizzling consistency; drizzle over cookies.