Preheat your oven to 350°F (175°C). Gather mixing bowls and line baking sheets with parchment paper.

Combine unsalted butter and white granulated sugar in a large mixing bowl and beat on medium speed for about 2-3 minutes until light and fluffy.

Add pure vanilla extract, the egg, lime juice, and lime zest, mixing on low speed until combined (1-2 minutes).

In a separate bowl, whisk together the flour, baking powder, baking soda, and salt. Gradually add to the wet mixture, mixing gently until just combined.

Roll the dough into 1-inch balls and place them on the baking sheets spaced 2 inches apart.

Bake for 9-10 minutes until edges are lightly browned and centers are soft.

Allow cooling on the baking sheets for about 5 minutes, then transfer to a wire rack to cool completely.

Whisk together powdered sugar, lime juice, lime zest, and vanilla to create the glaze.

Once cookies are cool, spoon or drizzle the glaze over each cookie, adding extra lime zest if desired.