BEAT sugar and shortening in large bowl with electric mixer at medium speed until light and fluffy. Add egg, vanilla and lemon peel, beating until well blended. Combine flour, ground hazelnuts, baking powder, salt and cinnamon in medium bowl. Add flour mixture gradually to shortening mixture at low speed until smooth. Divide dough into 4 equal pieces. Wrap each one with plastic wrap. Freeze 30 minutes.
HEAT oven to 350 degrees F. Roll 1/4 of dough between 2 sheets of lightly floured wax paper to 1/8-inch thickness. Remove top sheet of wax paper. Cut with a floured 2-inch round scalloped cutter. Cut centers out of half of the cookies with a 3/4 to 1-inch cutter. Place 2-inches apart on ungreased baking sheet.
BAKE 6 to 7 minutes or until edges are light golden brown. Cool 1 minute on baking sheet. Remove to cooling rack. Repeat with remaining dough. Spread about 1/2 teaspoon preserves on bottom side of each whole cookie. Sprinkle tops of center cut-out cookies with powdered sugar. Place on top of cookies with preserves.
If dough becomes too soft while cutting, place in freezer for 10 minutes.
Courtesy of Smucker's® Orchard's Finest® Preserves