In a stand mixer with the paddle attachment, cream the butter, sugar, and lemon zest. Add the egg, egg yolk, lemon juice, lemon extract, and yellow food coloring. Mix thoroughly.
In a separate bowl, mix the flour, baking powder, and salt. Add the dry ingredients to the wet ingredients until incorporated, scraping the bowl as necessary.
Scoop 1½ Tbsp sized cookie dough balls and roll them in a bowl with ¼ cup powdered sugar. Place cookies on a parchment or silicone lined baking sheet about 2 inches apart.
Bake at 350 degrees Fahrenheit for 9 to 10 minutes. Store cookies in an airtight container or plastic bag up to 5 days.