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Preheat oven to 350°F.
In a medium bowl, sift together flour, baking powder, and salt.
In the bowl of an electric mixer fitted with the paddle attachment, beat cream cheese and butter until smooth. Add sugar gradually, and mix until light and fluffy, scraping down the sides of the bowl as needed. Add zest, vanilla, and egg. Beat to combine. On low speed, add the dry ingredients and mix until just combined. Do not overmix. If batter seems loose or warm, chill in the refrigerator until firm.
Drop tablespoonfuls of batter onto parchment-lined baking sheets, spacing 2-inches apart. Use a small ice cream scooper for uniform cookies (and to make it easy).
Bake for 12 to 15 minutes, rotating the pan halfway through, until barely golden on the bottom. Do not overbake! Let cool on baking sheets for 5 minutes, then transfer to wire racks to cool completely.
Once the cookies are cool, whisk together the powdered sugar and lemon in a small bowl. Use a spoon to drizzle the icing over the cookies.
These cookies are best eaten the same day they are baked.