Preheat your oven to 350°F (175°C) and line a baking sheet with parchment paper.

In a mixing bowl, cream together the softened cream cheese and butter until light and fluffy.

Gradually incorporate the powdered sugar, mixing until well combined. Add in the eggs and mix properly, ensuring a smooth texture.

Stir in the vanilla extract, lemon zest, and fresh lemon juice.

In a separate bowl, whisk together the flour and baking powder. Gradually add this dry mixture to the wet ingredients until just combined.

Cover the dough and refrigerate for about 10-15 minutes.

Form the chilled dough into small balls, roll each one in granulated sugar, and place them on the lined baking sheet.

Bake in the preheated oven for about 10-12 minutes or until the edges are lightly golden but the centers are still soft.

Let them cool on the baking sheet for a few minutes before transferring them to a wire rack.