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In the bowl of a mixer fitted with the paddle attachment, cream the butter and granulated sugar on medium speed until fluffy, about 2 minutes. Add the egg and lemon zest and mix, scraping the bowl if needed, until combined.
Reduce the speed to low and add the flour and baking powder. Beat until combined. Wrap the dough in plastic wrap and refrigerate until firm, at least 1 hour or overnight.
Preheat the oven to 350 ̊. Line 2 baking sheets with parchment paper. Place the red sanding sugar in a small bowl. Break off tablespoon-size pieces of dough and roll into smooth round balls. Roll in the red sugar and place on the prepared pans. Gently indent the center of each cookie with your thumb, then press a cherry half cut-side down into each indent.
Bake the cookies until just set around the edges but not browned, 13-15 minutes. Let cool 5 minutes on the pans, then remove the cookies to a rack to cool completely.