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In a large bowl, cream butter and sugar until light and fluffy, 5 to 7 minutes. Beat in extract; gradually add flour until dough forms a ball. Cover and refrigerate until dough is easy to handle, about 1 hour.
Preheat oven to 350°. Roll dough into 1-in. balls. Place 1 in. apart on ungreased baking sheets. Using the end of a wooden spoon handle, make an indentation in the center of each ball; fill with jam.
Bake until edges are lightly browned, 14-18 minutes. Remove to wire racks to cool completely.
If desired, spoon additional jam into cookies. For glaze, combine confectioners' sugar, extract and enough water to achieve drizzling consistency; drizzle over cookies.