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Lemon Apricot Cookies

3/4 cup ground almonds, divided use
1 tablespoon powdered sugar
2 cups all-purpose flour
3 tablespoons finely grated lemon peel
1/4 teaspoon salt
1 cup unsalted butter, softened
2/3 cup powdered sugar
2 tablespoons cold water
2 teaspoons lemon extract
1 teaspoon vanilla extract
1/3 cup minced dried apricot
1/2 cup granulated sugar

1. Preheat oven to 375°F.
2. In a blender or food processor, combine 1/4 cup of the ground almonds with 1 tablespoon powdered sugar; process until very fine. Set aside.
3. In a medium bowl, combine flour, lemon peel and salt: set aside.
4. In large bowl, cream butter and remaining powdered sugar until light and fluffy. Add water, lemon extract and vanilla. Blend in flour mixture, apricots, almond-sugar mixture and remaining almonds; mix until blended. Refrigerate until cold, 30 to 60 minutes.
5. When cold, form into 1-inch balls and roll in sugar until evenly coated. Place on a cookie sheet. Press the balls down with the bottom of a small glass.
6. Bake 10 to 12 minutes, or until just browned around the edges. Cool slightly before removing from sheets.

Makes 36 cookies.