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1. In a large bowl, combine butter and shortening. Beat with an electric mixer on medium to high speed for 30 seconds. Add granulated sugar, baking powder, salt, cinnamon, and cloves. Beat until combined, scraping bowl occasionally. Beat in egg, milk, vanilla, and lemon peel until combined. Beat in as much of the flour as you can with the mixer. Using a wooden spoon, stir in any remaining flour. Divide dough in half. Cover and chill about 1 hour or until dough is easy to handle.
2. Preheat oven to 375 degrees F. On a lightly floured surface, roll half of the dough at a time until 1/8 to 1/4 inch thick. Using 2-1/2-inch cookie cutters, cut dough into desired shapes. Place 1 inch apart on an ungreased cookie sheet. Using 3/4-inch cookie cutters, cut desired shapes from centers of half of the cookies. Reroll scraps as necessary.
3. Bake in the preheated oven for 7 to 10 minutes or until edges are lightly browned. Transfer to a wire rack; cool.
4. Sift powdered sugar onto the cookies with the shapes cut in the middle. Spread a scant teaspoon of preserves over the flat sides (bottoms) of the cookies with no cutout centers. Top with the powdered sugar-sifted cookies, bottom sides down. Serve within 2 hours. Makes about 20 sandwich cookies.