Sift the sugar and flour into a mixing bowl. Crumble the butter and flour together with your fingers until you get a mixture resembling breadcrumbs.
Add the egg, lemon zest and lemon extract. Knead it into a firm dough.
Make a ball shape from the dough and rest it in the refrigerator for 30 minutes.
Preheat the oven to 180°C.
Roll out the dough on a lightly floured surface to 5 mm thickness, then cut out shapes using cooking cutters. If you want to hang them, insert a hole in the top of each cookie using a straw or skewer.
Bake for 10-12 minutes until lightly golden.
Transfer the cookies to a wire rack to cool.
When the cookies are cooled, dust with icing sugar or decorate them with icing or chocolate pens, etc. Alternatively dip them into a lemon glaze and sprinkle with edible glitter or silver balls etc. - then let dry.