Preheat oven to 350 degrees.
In mixing bowl whisk flour, baking powder, and salt.
In separate mixing bowl whip butter, sugar, and fresh lemon zest until pale and fluffy. Then mix in egg and egg yolk.
Add lemon juice, lemon extract, vanilla extract, and yellow food coloring (optional) to wet ingredients and mix until combined.
With mixer on low speed, slowly add in dry ingredients and mix until combined.
Pour powdered sugar into a small bowl. Shape dough into small balls and drop in powdered sugar, roll to evenly coat (if dough is sticky and hard to roll into balls, place it in the refrigerator for 15-20 minutes. This will make the dough much easier to work with).
Transfer balls to a parchment paper-covered cookie sheet, spaced about 2" apart.
Bake for 10-13 minutes.
Transfer to rack to cool and dust with additional powdered sugar if desired.