Heat oven to 375. Blend rind, water & 1/4 cup sugar in saucepan; boil gently over med heat for 10-15 minutes until mixture is thin syrup consistency. Add enough water to make 1/4 cup syrup. Cream butter, 1 cup sugar & flavoring until fluffy. Blend dry ingredients. Stir syrup, then dry ingredients into creamed mixture; mix thoroughly.
Roll in 1" balls. Place 2" apart on lightly greased sheet. Flatten with bottom of greased glass dipped in sugar. Bake 8 minutes.