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Preheat oven to 375 degrees.
Combine flour, baking powder, and salt then set aside. In the bowl of an electric mixer, beat butter and 1 cup sugar until fluffy. Beat in egg yolks and vanilla. Gradually beat in flour mixture. Add 2 TBSP. lime zest and lime juice.
Shape dough into 48 balls, using 1 TBSP. dough for each ball. In a small bowl combine 1 TBSP. lime zest and 1/2 cup sugar. Roll balls in sugar mixture and place 1 inch apart on parchment lined cookie sheets. Bake until edges are slightly browned, about 12 minutes. Cool.
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