2 cups all-purpose flour, plus more for work surface
1/2 teaspoon baking powder
1/4 teaspoon coarse salt
1 cup granulated sugar
2 tablespoons finely grated lime zest, plus 1/4 cup fresh lime juice (about 4 limes total)
3/4 cup (1 1/2 sticks) unsalted butter, softened
1 teaspoon pure vanilla extract
Confectioners' sugar, for dusting
Sift together flour, baking powder, and salt into a large bowl; set aside.
Put granulated sugar and lime zest in the bowl of an electric mixer fitted with the paddle attachment. Mix on medium speed 1 minute. Add butter, and mix until fluffy, about 2 minutes. Mix in vanilla and lime juice. Reduce speed to low, and gradually mix in flour mixture.
On a lightly floured work surface, halve the dough. Flatten each half into a 10-inch disk, and wrap each in plastic. Freeze until firm, about 30 minutes.
Preheat oven to 325 degrees. Working with 1 half at a time, roll out dough on parchment paper to 1/8 inch thick. Cut shapes from dough with a 3-inch flower-shape cookie cutter. Space 1 inch apart on baking sheets lined with parchment paper. Cut a hole in center of each with a 1-inch round cutter. Repeat with remaining disk. Wrap scraps in plastic. Freeze 30 minutes; reroll, and cut.
Bake cookies, rotating sheets halfway through, until set, 12 to 13 minutes. Let cool on a wire rack. Before serving, sift confectioners' sugar over cookies.
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