Preheat the oven to 350°F (175°C). In a mixing bowl, whisk together the flour, baking powder, and salt.

In another bowl, cream the softened butter and granulated sugar until light and fluffy. Add the egg, limoncello, lemon zest, and vanilla extract, mixing until well combined.

Gradually add the dry ingredients to the wet ingredients, mixing until just combined.

Using a cookie scoop, drop dough onto a baking sheet lined with parchment paper, spacing them about 2 inches apart.

Bake for 10-12 minutes or until the edges are lightly golden. Remove from the oven and let cool on the baking sheet for a few minutes before transferring to a wire rack.

Once cooled, dust the cookies with powdered sugar before serving.