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1. In a food processor process toasted almonds until finely ground. In a small bowl combine the ground almonds, flour, and salt; set aside.
2. In a large bowl beat butter and sugar with an electric mixer on medium speed until light and fluffy. Add egg, vanilla, lemon peel, and, if desired, almond extract. Beat until combined, scraping sides of bowl occasionally. Beat in as much of the flour mixture as you can with the mixer. Using a wooden spoon, stir in any remaining flour mixture. Divide dough in half. Cover; chill for 2 hours or until dough is easy to handle.
3. Preheat oven to 350 degrees F. On a lightly floured surface roll half of the dough at a time until 1/4 inch thick. Using a 2-1/2- to 3-inch cookie cutter, cut out dough; reroll scraps as necessary (if necessary, chill scraps before rerolling). Place cutouts 1 inch apart on an ungreased cookie sheet.
4. Bake for 8 to 12 minutes or until edges are light brown and centers are set. Cool on cookie sheet for 1 minute. Transfer to a wire rack; cool.
5. Divide Royal Icing into three or four portions. If desired, leave one portion white; set aside. Tint remaining portions with desired-colors paste food coloring. Divide each color of icing in half. To half of each color, add water, 1 teaspoon at a time, until icing reaches a drizzling consistency. Use a thin spatula to spread thinned icings on cookies. Place cookies on a wire rack set over waxed paper. Let stand for 1 to 2 hours or until dry. Place each color of the remaining tinted icings into separate resealable small heavy plastic bags; cut a small hole in one corner of each bag. Pipe lines and bows on dry iced cookies. Let stand about 1 hour or until dry.
1. In a large mixing bowl stir together the powdered sugar, meringue powder, and cream of tartar. Add the water and vanilla. Beat with an electric mixer on low speed until combined; beat on high speed for 7 to 10 minutes or until icing is very stiff. If not using right away, cover bowl with a damp paper towel and cover paper towel with plastic wrap; chill for up to 48 hours.