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Cream the softened butter and cream cheese with the sugar in a mixing bowl for 5 minutes. Start at a low speed and gradually increase to medium-high speed.
Add the egg and vanilla to the mixing bowl and mix on low until combined.
Add the lemon zest and lemon juice and mix until combined at low speed.
In a separate bowl, combine the flour, baking powder, baking soda, and salt. Slowly add the mixer on low speed until combined.
Place the cookie dough covered in plastic wrap, in a refrigerator for at least 4 hours.
After 4 hours in the refrigerator, remove your dough. Preheat your oven to 350° and line a cookie sheet with parchment paper.
Use a teaspoon to scoop out some dough. You want about a heaping teaspoon size. Then roll the dough into a ball shape and place on the parchment-lined cookie sheet.
Then use your thumb or the back of a teaspoon to create indents in each of the dough balls.
Take the 1/2 cup of strawberry jam and place it in a microwave safe bowl. Heat the jam for about 20-30 seconds on 50% power. You are just wanting to loosen up the jam, not heat it up.
Use a teaspoon to spoon a little of the strawberry jam into each of the thumbprints you made in each dough ball.
Place in your preheated oven and bake for 18-22 minutes.
While the cookies are cooling, make your quick drizzle.
In a bowl, combine the powdered sugar and water until it combined to a drizzle consistency.
After the cookies are cooled at least 20 minutes, use a fork to drizzle the icing on top of the cookies.