In a large mixing bowl, beat together the sugar and lemon zest until fragrant, about 1 minute. Add the butter and beat until pale and fluffy, about 1-2 minutes. Mix in the egg yolk.
In a medium mixing bowl, whisk together the flour and cornstarch. Add the flour mixture to the wet ingredients and mix until it becomes a crumbly dough. Pour in the lemon juice and mix until a firm dough forms.
Line two baking sheets with parchment paper. Using a 1 ½ tablespoon cookie scoop, portion the dough and then divide each scoop in half. Roll each half into a dough ball and place onto the prepared baking sheet 1 inch apart. Repeat with the remaining cookie dough.
Use the bottom of a drinking glass to flatten the cookie dough balls slightly. Then loosely cover the baking sheets with plastic wrap and chill the cookie dough for 30-60 minutes until firm.
Preheat your oven to 350 degrees F. Remove the cookies from the fridge and take off the plastic wrap. Bake for 9-12 minutes, or until the edges begin to turn golden.
While the cookies bake, whisk together the powdered sugar and Kool-Aid lemonade mix until evenly combined.
Remove the cookies from the oven and let them cool on the baking sheet for 1-2 minutes. Then dip each cookie into the lemonade sugar until it's fully coated. Place the cookies on a wire rack to cool. Once cooled, coat them again in the lemonade sugar before eating.
Notes
If you don't have salt butter on hand, you can use unsalted butter and add 1/4 teaspoon salt to the flour mixture.