Beat butter at medium speed of an electric mixer; gradually add 2/3 cup sugar, beating well. Add egg, lemon rind, and extracts; mix well. Combine flour, soda, and salt; add to creamed mixture. Divide dough in half. Roll each portion of dough between 2 sheets of wax paper to a 12-inch square. Chill at least 1 hour.
Remove one portion of dough from refrigerator; remove top piece of wax paper, and cut dough into 1-1/2-inch squares. Place 1/4 teaspoon raspberry preserves in center of half of squares; brush edges of filled squares with water. Place unfilled squares over filled squares; press edges to seal. Cut an X on top of each. Repeat with remaining dough and preserves.
Place cookies on greased cookie sheets, and bake at 350F for 9 to 11 minutes or until edges are lightly browned. Remove from oven, and cool on baking sheets 4 to 5 minutes. Transfer cookies to wire racks, and cool competely. Sprinkle with powdered sugar.