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1. Preheat oven to 350 degrees F. Line cookie sheets with parchment paper; set aside. Beat butter with an electric mixer on medium to high speed for 30 seconds. Add powdered sugar. Beat until combined, scraping bowl. Beat in vanilla. Beat in as much of the flour as you can with the mixer. Stir in cranberries, lemon peel, and any remaining flour (use your hands to work in flour, if mixture seems crumbly).
2. Shape mixture into 1/2-, 3/4-,or 1-inch balls. Roll dough balls in nonpareils. Arrange balls 1 inch apart on prepared cookie sheets.
3. Bake in the preheated oven for 10 minutes for about 1/2-inch balls, 13 minutes for 3/4-inch balls, or 15 minutes for 1-inch balls, or until bottoms of cookies are light brown. Transfer to wire racks and let cool.