Preheat the oven to 350°F/180°C. Line 2 baking sheets with parchment paper and set aside.

Add the softened butter and granulated sugar to the bowl of a stand mixer. Beat on a medium speed for 2 minutes, or until pale and creamy.

Add the egg, lime juice, lime zest and vanilla extract, and beat once again until combined, scraping the sides of the bowl as necessary.

Add the flour, baking powder, baking soda and salt, and beat on a low speed until just combined.

Scoop the cookie dough using a tablespoon sized cookie scoop, or use a tablespoon if a cookie scoop is not available, placing the scooped cookie dough on the prepared baking sheets.

Bake the cookies for 10-12 minutes, or until still slightly soft in the center. Allow to cool on the baking sheets for 5 minutes before transferring to a wire cooling rack to cool completely.

To make the lime glaze, add the powdered sugar and 2 tablespoons of lime juice to a small mixing bowl, adding more lime juice as necessary until a drizzling consistency is reached. Mix until well combined, and drizzle over the cooled cookies. Decorate with the extra lime zest, if using.