In a stand mixer or with a hand mixer, mix together butter and sugar until fully combined. Add the remainder of the ingredients (except for the powdered sugar) and mix again until a cohesive dough forms. Turn out onto plastic wrap and shape into a ball; refrigerate for at least 1 hour.
Preheat the oven to 350°F (make sure the temperature is true; adjust if your oven runs hotter than normal). Line a baking sheet with parchment paper.
Roll into approximately 20 1-inch balls, pressing together the dough as necessary where it is crumbly. Important: Work quickly to avoid the butter softening, which results in a melted cookie in the oven. We recommend refrigerating half of the dough while rolling out the first half of the cookies.
Place the cookies onto the baking sheet and bake for 8 minutes, turning the pan halfway through for even baking, until the cookies are light golden brown but still soft. (Be careful not to over bake or the cookies may start to lose their shape.) Remove the cookies from the oven and cool them on the pan for 10 minutes (avoid touching; the cookies will solidify as they cool). Once hardened, transfer to a rack to cool completely.
When completely cool, dust the cookies with the powdered sugar.