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1
Grease several baking sheets and set aside.
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2
With a mixer at medium speed, beat the butter in a large mixer bowl until light and fluffy.
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3
Beat in the sugar until well blended and smooth.
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4
Beat in the egg and lemon peel.
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5
With the mixer at low speed, beat in the flour just until evenly incorporated.
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6
Divide the dough in half.
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7
Place each portion between large sheets of waxed paper.
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8
Use a rolling pin to roll out the dough to a scant 1/4 inch thick.
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9
Check the undersides and smooth out any wrinkles in the waxed paper.
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10
Stack the rolled portions on a tray or baking sheet.
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11
Refrigerate for about 20 minutes or until cold and firm, but not hard.
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12
Heat the oven to 375F (190C).
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13
Working with one chilled portion of dough at a time (keep the other one chilled), peel away a layer of waxed paper.
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14
Replace the paper and turn the dough over.
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15
Peel of the second layer of paper.
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16
Using a 2-inch round or scalloped cutter (or a small juice of sherry glass) cut out the cookies.
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17
Use a spatula to carefully lift the cookies from the paper and place them about 1 inch apart on the baking sheets.
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18
Reroll the dough scraps between waxed paper; rechill in the refrigerator.
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19
Repeat the process with the second portion of dough.
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20
Working with a few cookies at a time, brush the tops with the egg yolk-water mixture using a pastry brush or paper towel.
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21
Sprinkle the tops lightly with granulated sugar.
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22
Repeat until all of the cookies are garnished.
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23
Bake the cookies for 6 to 9 minutes or until the top is just tinged with brown and slightly darker at the edges.
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24
Let cool on the baking sheets for about 2 minutes.
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25
Transfer to wire racks and let stand until thoroughly cool.
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26
Store airtight for up to a week.
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27
Freeze for longer storage.