Preheat oven to 350º F. Line cookie sheets with parchment paper or a nonstick baking mat.
Cream together butter and granulated sugar until light and fluffy, about 3 minutes. Add egg and mix until well-combined.
Stir in flour, baking powder, salt, vanilla, lemon zest and lemon juice. Allow to sit for about 3 minutes to allow lemon flavor to develop.
Scoop cookie dough by the tablespoon full and roll into a ball.
Add lemon sugar to a large bowl for rolling cookie dough in before baking. Place each ball of cookie dough into the bowl of lemon sugar and roll to coat well. Place cookie dough onto baking sheet, spacing about 1 1/2-inches to 2 inches apart. Lightly press each cookie down. Bake for 10 to 12 minutes or until lightly browned.