Start by gathering all your ingredients. Make sure the butter is softened to room temperature for easy creaming.
In a large mixing bowl, use an electric mixer to cream together 1 cup salted butter and 1/2 cup powdered sugar until light and fluffy, about 3 to 4 minutes.
Mix in 1 teaspoon lemon zest and 1 teaspoon lemon extract, ensuring they are well incorporated into the butter and sugar mixture.
Gradually add 2 cups all-purpose flour, mixing on low speed until just combined; the dough may appear crumbly.
Add 3 tablespoons milk to the dough, mixing until fully combined; the dough should be soft but not sticky.
Wrap the dough in plastic wrap and refrigerate for at least 30 minutes to help maintain shape while baking.
Preheat your oven to 350°F (175°C). Line a baking sheet with parchment paper.
On a lightly floured surface, roll out the dough to about 1/4 inch thick. Use a cookie cutter to cut out your desired shapes.
Place the cookies on the prepared baking sheet and bake for 12-15 minutes, or until edges are lightly golden.
Allow cookies to cool on the baking sheet for a few minutes, then transfer to a wire rack to cool completely. Enjoy!