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1
Whisk the flour, baking powder and salt in a medium bowl.
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2
Beat the butter, cream cheese, 1/2 cup granulated sugar and 1 tablespoon lime zest in a large bowl with a mixer on medium speed until light and fluffy, about 3 minutes.
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3
Add the lime juice and egg; mix until combined.
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4
Reduce the mixer speed to medium low, add the flour mixture and beat until combined.
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5
Place two 12-by-16-inch pieces of parchment paper on a work surface.
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6
Divide the dough in half and place each half on a piece of parchment; form each into a rough log.
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7
Fold the parchment over the dough; use a ruler to help you roll and press each piece of dough into a 1-by-12-inch straight-sided log.
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8
Wrap each log in the parchment and refrigerate until firm, at least 3 hours.
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9
Position racks in the upper and lower thirds of the oven; preheat to 375 degrees F. Line 2 baking sheets with parchment.
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10
Combine the remaining 1/3 cup granulated sugar and 1 1/2 teaspoons lime zest and the green sanding sugar on a piece of parchment.
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11
Unwrap the logs; roll in the lime sugar to coat.
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12
Slice into 1/4-inch-thick squares; arrange 1 inch apart on the prepared baking sheets.
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13
Bake, switching the pans halfway through, until the cookies are golden around the edges, about 12 minutes.
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14
Let cool 5 minutes on the baking sheets, then transfer to racks to cool completely.
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15
Photograph by Levi Brown