In a medium-size saucepan, melt butter and margarine over moderate heat. Stir
in granulated sugar; remove from heat and let cool 15 minutes.
Beat in eggs and lemon extract. Add flour mixture, one-fourth at a time, mixing
well after each addition.
Wrap dough and refrigerate 1 to 2 hours, or overnight.
Heat oven to 375 degrees F.
Divide dough in half. On a floured board or pastry cloth or between two layers
of wax paper roll one piece of dough 1/8-inch thick. Cut with assorted cookie cutters.
Place cookies two inches apart on ungreased baking sheets.
Decorate with colored
sugar if desired. Repeat with remaining dough.
Bake for 8 to 10 minutes, until edges
are lightly browned. Cool on wire racks.