Beat butter and cream cheese at medium speed of an electric mixer until creamy. Gradually add sugar, beating until light and fluffy. Add egg yolk, lemon rind, and lemon juice, beating well. Add flour, beating until blended. Cover and chill dough 2 hours.
Shape dough into 1" balls. Place 2" apart on ungreased cookie sheets. Flatten each ball into a 1 1/2" disc. Press a candied cherry half in center of each cookie.
Bake at 350° for 12 to 15 minutes or until edges are barely golden. Cool 1 minute on cookie sheets; remove to wire racks, and cool completely. Drizzle lightly with Lemon Glaze. Let stand until glaze sets.
These were easy and would make nice Christmas cookies. The cream cheese batter was great. Thing is, I wasn't crazy about the glaze... I will make these again but either skip the glaze entirely or choose a different one. Very nice cookie though.
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