Preheat the oven to 350 F.
In a large mixing bowl cream together ¼ cup confectioners’ sugar, butter, and 2 teaspoons lemon zest.
Add the vanilla extract to the flour mixture and mix until smooth.
Make cookie dough balls into the size of a quarter, or 1-inch balls, and place them onto a prepared cookie sheet. You can use a scoop to help keep the sizes the same.
Bake until cookie bottoms are golden brown, about 12-15 minutes.
Place cookies on a cooling rack to cool completely.
In a small bowl, combine a cup of confectioner’s sugar and a teaspoon of lemon Kool-Aid and mix.
Dredge cookies into the lemonade powdered sugar until completely coated and put on a plate. Repeat with remaining cookies.