1In a mixing bowl beat butter and 1/2 cup sugar with an electric mixer until smooth. Beat in lemon peel and vanilla.
2In a food processor, finely grind flour, nuts, salt and cinnamon. Add to butter mixture and mix just until dough holds together.
3Gather dough into a ball and flatten into a disk. Wrap in plastic and chill for about 1 hour or until firm.
4Preheat oven to 325 degrees F. Butter cookie sheet.
5Roll dough on a lightly floured surface to 1/4-inch thick. Cut out cookies with a 3-inch round cookie cutter. Gather scraps into a ball and re-roll to 1/4-inch thick. Cut out cookies, forming total of 12. Transfer cookies to the cookie sheet.
6Using a 1-inch round cookie butter, cut out the center of 6 cookies and remove. Bake about 20 minutes or until golden. Cool on rack for 5 minutes.
7Leaving a 1/8-inch border, spread 1 1/2 teaspoons of marmalade evenly over each cookie without a hole. Sift additional powdered sugar over cookies with holes. Place cookies with holes sugar side up atop jam-covered cookies.