In a large mixing bowl, add 1 cup of softened unsalted butter and 1 cup of granulated sugar. Beat on medium speed until creamy and light in color, about 2 to 3 minutes.

Incorporate 2 tablespoons of fresh lime zest and 2 tablespoons of fresh lime juice into the butter mixture. Blend on low speed until well mixed, about 30 seconds.

Gradually add in 2 ½ cups of all-purpose flour, 1 teaspoon of baking powder, and ¼ teaspoon of salt. Mix on low until the dough starts to come together, about 1 to 2 minutes.

Wrap the dough in plastic wrap and refrigerate for at least 30 minutes to help firm it up.

Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

Use a cookie scoop or tablespoon to portion out the chilled dough on the prepared baking sheets and bake for about 10-12 minutes or until the edges are lightly golden.

Allow the cookies to cool on the baking sheets for about 5 minutes before transferring them to a wire rack. If making the lime glaze, mix 1 cup of powdered sugar with 2 tablespoons of fresh lime juice and drizzle over the cooled cookies.