In a large mixing bowl combine flour, sugar, and poppy seed. Using a pastry blender, cut in butter till mixture resembles fine crumbs and starts to cling. Stir in lemon peel. Form mixture into a ball and knead till smooth. On a lightly floured surface, pat or roll dough to 1/2-inch thickness. Cut using a 2-inch scalloped cutter. Place cookies 1 inch apart on an ungreased cookie sheet. Bake in a 325 degree F. oven for 20 to 25 minutes or till bottoms just start to brown. Cool on wire rack. Brush cooled cookies with Lemon Glaze. Makes about 16.
Lemon Glaze: In a small bowl combine 1 cup sifted powdered sugar, 1 teaspoon lemon juice, and enough milk (about 1 1/2 tablespoons) to make of glazing consistency.