In a medium bowl, whisk flour, baking powder, and salt.
In a large bowl using a hand mixer, beat butter and cream cheese with sugar until light and fluffy, about 2 minutes. Beat in eggs, lemon zest and juice, vanilla, and food coloring. Beat in dry ingredients until just combined. Cover bowl with plastic and refrigerate until firm, at least 2 hours and up to overnight.
Preheat oven to 325° and line a baking sheet with parchment paper. Roll dough into 2" balls, then roll in powdered sugar. Let sit 2 minutes until sugar is absorbed, then reroll in powdered sugar (do not shake off excess). Place about 2-inches apart on prepared baking sheet and bake until cookies crackle and are set but still slightly soft in the center, 17 to 19 minutes. Transfer to a cooling rack and let cool completely.
Recipe by The Best Video Recipes for All at https://recipes-for-all.com/lemon-butter-cookies/