Preheat oven to 350°F.
In a large mixing bowl, cream together ½ cup granulated sugar, powdered sugar, butter, and vegetable oil.
Beat in egg and extract.
Add next 4 ingredients and mix together. The dough will be somewhat soft. Refrigerate a few minutes if too soft to work with.
Shape into 1-inch balls and roll in reserved ½ cup of granulated sugar.
Place on an ungreased cookie sheet and flatten with the bottom of a glass that has been dipped in granulated sugar (or colored sugar if you prefer).
Bake at 350°F for 10-12 minutes.
Note: Cookies should be only very slightly browned. They will be a more of a light golden color.
