Thoroughly cream butter and sugar. Add egg, lemon peel, and juice; beat well. Sift together flour, baking powder, and salt. Add to creamed mixture, mixing well. Stir in finely chopped nuts.
Shape into 2" diameter rolls. Chill thoroughly for about 2 hours.
Slice thin and place on ungreased cookie sheet. Bake in 350 degree oven for 10 minutes. Cool slightly before removing from pan.
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