Preheat oven to 350 degrees F. Line baking sheets with parchment sheets and set aside.

In a small mixing bowl, whisk together the flour, baking powder, baking soda, and salt. Set aside.

Place the 1 1/2 cups sugar and cream cheese in a large mixing bowl. Using a metal whisk, stir until combined. Pour the melted butter over the mixture, then add the vegetable oil, egg, lemon zest, milk, and lemon juice. Whisk until combined. Stir in the flour mixture with a silicone spatula until the dough is cohesive and smooth. It will still be very moist.

Using a cookie scoop, generously scoop the dough (you want about 2 tablespoons of dough per cookie) and roll into the reserved sugar. Evenly space cookie balls on the sheet. Bake for 6 minutes. Rotate the pan and bake for another 5-6 minutes or until set around the edges. Allow the cookies to cool for about 5 minutes on the pan and then transfer to a cooling rack to glaze.

Once cooled prepare the glaze by whisking the powdered sugar, lemon juice, and lemon zest together until well combined. Spoon onto the top of the cookies. Allow to sit and dry, glaze will harden.

Store cookies in airtight container at room temperature. Enjoy!