Preheat oven to 375
Prepare baking sheet with parchment paper.
Mix the first 5 ingredients in a small bowl.
In a medium mixing bowl cream butter and sugars.
Add egg, milk product, orange zest, orange extract, and lemon extract. Mix together well.
Stir the flour mixture in, being sure to scrape the sides and the bottom of the bowl. Avoid over mixing.
Chill dough for up to 2 days or form walnut-sized balls. Slightly less than 2 tablespoons.
Roll balls in powdered sugar and bake for 9 minutes. Edges of cookies just start to brown lightly.
Remove cookies from oven and allow to sit for 5 minutes. Transfer to a cooling rack. After they reach room temperature, you can roll the cookies in the powdered sugar again if desired.
To make a frosted sugar cookie, follow these simple steps:
Skip rolling dough balls in powdered sugar.
Form a walnut-sized ball and place it on the prepared cookie sheet.
Slightly press the dough to about half the size.
Bake for 9-10 minutes.
Allow cookies to cool completely before frosting.