Preheat the oven to 350°F. Line 2 baking sheets with parchment paper; set aside.
Whisk the flour baking powder, baking soda, and salt together in a medium bowl.
Place the sugar and cream cheese in a large bowl. Whisk in the melted butter (some lumps of cream cheese will remain).
Whisk in the oil until incorporated. Whisk in the egg, lemon juice, lemon zest, lemon extract, and food coloring until smooth.
Using a rubber spatula, fold in the flour mixture until a soft, homogenous dough forms.
Scoop the dough into 1.5-tablespoon sized balls and place them 2 inches apart on the prepared baking sheets. Using the bottom of a greased measuring up, press the dough balls until 2 inches in diameter.
Bake cookies, one sheet at a time, for 11-13 minutes, until the edges are set.
Cool the cookies on the pan for 5 minutes then transfer to a wire rack to cool completely.
Notes
Lemon juice and zest: 1 medium lemon will yield about 2 tablespoons of lemon juice and 1 tablespoon of lemon zest.
Lemon extract: If you don't have lemon extract, you can replace it with an additional 1/2 to 1 tablespoon lemon zest.
Make ahead tip:
Cookies will keep for up to 1 week stored in an airtight container at room temperature.
Baked cookies can be frozen for up to 3 months. Thaw to room temperature before serving.
Raw cookies can be frozen for up to 1 month. Bake frozen cookies in 350°F oven for 17-22 minutes.