Combine 1 cup butter, sugar and egg in bowl. This should be beaten at medium speed, scraping bowl often, until creamy. Thereafter, add orange juice and 1 tablespoon vanilla. Continue beating, scraping bowl often in the same way, until well mixed. Following this, add flour and baking powder, beat at low speed until well mixed.
The dough is to be divided into thirds. Shape each third into a ball, flatten slightly. Wrap each in plastic food wrap, refrigerate 2-3 hours until firm.
Heat oven to 400 degrees Fahrenheit.
Next, roll out dough, one-third at a time, on a lightly floured surface (keeping remaining dough refrigerated), to 1/8 to ยผ inch thickness. This is to be cut with 3 inch cookie cutters. Place 1 inch apart onto ungreased cookie sheets.
Following this, bake for 6-10 minutes or until edges are lightly browned. Let stand 1 minute on cookie sheet, remove to cooling rack. Cool completely.
Then, powdered sugar, 1/3 cup butter and 1 teaspoon vanilla are to be combined in bowl.