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Preheat the oven to 350 degrees.
Cream butter and sugar together.
Add vanilla, egg, lime juice, and lime zest.
Slowly stir in flour, baking powder, salt, and baking soda.
Roll into 1” balls and place on baking sheets that have been lined with parchment paper.
Bake for 9-10 minutes or until the edges start to brown.
Once cookies are done, remove from the oven and let cool on baking sheet for 5 minutes before transferring to a cooling rack.
While the cookies cool, combine the powdered sugar, lime juice, lime zest, and vanilla for the glaze (if needed, add a little extra lime juice or water to make more thin, or add more powdered sugar to thicken).
Spoon 1 teaspoon of glaze in the center of each cookie and spread evenly or drizzle glaze over cookies and garnish with lime zest.