In the bowl of an electric stand mixer fitted with the paddle attachment, mix butter on medium speed until creamy, about 20 seconds. Blend in 2/3 cup powdered sugar. Mix in lemon zest, lemon extract and vanilla extract.
With mixer set on low speed slowly add in flour mixture and mix just until combine. Stir in almonds. Cover bowl with plastic wrap and chill 30 minutes, preheat oven to 350 degrees halfway through chilling.
Scoop dough out 1 Tbsp at a time and roll into a ball, then place balls on Silpat or parchment paper lined baking sheets, spacing cookies about 2-inches apart and bake in preheated oven for 14 - 16 minutes.
Remove from oven and allow to cool several minutes then while cookies are still warm, pour 1 1/2 cups powdered sugar into a bowl and roll cookies in powdered sugar.
Transfer to a wire rack to cool then once cookies are cool, roll in powdered sugar once more, this time to generously coat (I pressed it into the powdered sugar to give it a thick coating). Store cookies in an airtight container.
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