Begin by making your lemon sugar. In a medium bowl, combine granulated sugar and fresh lemon zest. Rub the zest into the sugar until fragrant and light yellow. Set aside.

Preheat the oven to 350°F (175°C) and line baking sheets with parchment paper.

Cream together softened butter and granulated sugar (both regular and lemon sugar) until light and fluffy, about 3-4 minutes.

Add in the egg, fresh lemon juice, and vanilla extract. Mix on low speed until just combined.

In a separate bowl, whisk together all-purpose flour, baking soda, baking powder, and salt. Gradually add this to the wet ingredients until just combined.

Form rounded balls of dough about the size of two tablespoons and place on prepared baking sheets, leaving space between each ball.

Roll the dough balls in the reserved lemon sugar until well coated.

Bake for 9-11 minutes until tops look slightly crackly and edges begin to set.

Remove from the oven and cool on the sheets for 3-5 minutes before transferring to a cooling rack.