Preheat your oven to 350°F (175°C) to ensure even baking.
In a medium bowl, whisk together the all-purpose flour, baking powder, and salt. Set aside.
In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy, about 2-3 minutes.
Add the egg, egg yolk, lemon zest, lemon juice, lemon extract, and vanilla extract to the creamed mixture. Mix until well combined.
Gradually add the dry ingredients to the wet ingredients, mixing until just combined. If using, add yellow food coloring and mix until evenly distributed.
Cover the dough with plastic wrap and chill in the refrigerator for about 30 minutes.
Once chilled, scoop out portions of dough, roll into balls, and coat generously in powdered sugar.
Place the dough balls on a lined baking sheet, leaving space between each. Bake for about 10-12 minutes until edges are set but centers are soft.
Cool on the baking sheet for about 5 minutes before transferring to a cooling rack.