Cream butter with paddle attachment. Add sugar and continue creaming. Add the egg, lemon, and vanilla and mix. Add nuts and mix. Stir together dry ingredients in a bowl and add to mixer and blend. Form into disks, wrap and chill. Roll out dough with floured rolling pin to 1/8-inch thickness on a well floured surface. Cut out disks, fluted if desired, approximately 2 inches in diameter. Cut out the centers of half the disks with a cutter in the shape of your choice. Re-roll scraps and repeat. Chill cut out dough. Bake in an oven preheated to 350 degrees F for 12 minutes or until edges turn golden then cool on a wire rack. Heat the jam and spread the solid disks with a layer of the hot jam. Glue on the lids pressing down lightly. Sprinkle with powdered sugar, then fill the holes with more jam. Let set slightly before serving.
Recipe courtesy of Gale Gand