In a large mixing bowl, beat the softened butter, granulated sugar, and finely grated lemon peel together using an electric mixer for 1-2 minutes, until the mixture is light and fluffy.
Add the freshly squeezed lemon juice and egg to the creamed mixture. Beat again until everything is well combined.
Gradually add in the all-purpose flour, baking soda, and salt to the wet mixture, stirring by hand with a spatula until just combined. Be careful not to overmix at this stage.
Cover the mixing bowl with plastic wrap and refrigerate the dough for 30-60 minutes. Chilling allows the flavors to meld and prevents the cookies from spreading too much during baking. I always find that chilling the dough results in thicker, chewier cookies.
Pre-heat the oven to 350ºF. Place the 1/4 cup sugar in a small bowl. Using a cookie scoop, form balls from the chilled dough. Roll each ball in the sugar to coat, then place them 2 inches apart on a silicone lined baking sheet. Bake in the preheated oven for 11-13 minutes, or until the edges have a faint golden color.
Allow the cookies to cool on the baking sheet for 5 minutes so they can firm up, then transfer them to a cooling rack to cool completely before serving.