Preheat oven to 350 degrees. Line cookie sheets with parchment paper. In a mixing bowl, with an electric mixer, beat cream cheese and butter until creamy. Beat in egg and vanilla and lemon extracts. Gradually, add the cake mix.
Pour 1/3 cup powdered sugar in a small bowl. Using a cookie scoop or a tablespoon, drop rounded amounts of dough, roll in powdered sugar and place on cookie sheets. Bake 10-12 minutes or until edges begin to lightly brown. Leave cookies on cookie sheets for 2 minutes; remove to wire rack. Glaze warm cookies.
Lemon Glaze: In small bowl, combine powdered sugar, half & half and lemon extract. Stir in food coloring. Drizzle over cookies. If desired, IMMEDIATELY before glaze begins to set, decorate. Makes 3 dozen.