1. Butter an 8 1/2-inch cake or springform pan; set aside. Sift together flour and salt into a small bowl; set aside. Place butter in bowl of electric mixer fitted with paddle attachment. Cream until fluffy, 3 to 5 minutes. Add 1/4 cup grated lemon or orange zest and 1 tablespoon lemon or orange juice to creamed butter-and-sugar mixture. Combine well before adding flour mixture. Add sugar, and continue to beat until very light in color and fluffy, occasionally scraping down the sides of the bowl with a spatula, about 2 minutes more. Add vanilla, if using. Add flour mixture, and combine on low speed, scraping with spatula if necessary, until flour is just incorporated and dough sticks together when squeezed with fingers.

2. Pat dough into prepared pan. If rolling out dough to cut into shapes, form into a flat disk; wrap in plastic. Chill until firm, at least 1 hour.

3. Roll dough out on lightly floured surface to 1/4 inch thick. Cut into coins with 2-inch round cutter. Roll edges in sanding sugar; chill.

4. Heat oven to 325 degrees. Bake until firm and just starting to color, about 20 minutes.