Cream together butter and sugar until fluffy and light. Add grated lemon peel, salt, flour, grated almonds, and 1 tsp. vanilla; mix thoroughly. Place dough in bowl. Cover and chill thoroughly. When the dough is well chilled; or the next day, roll out dough to 1/8"thickness and cut with moon/crescent cookie cutter. Place 1/2" apart on un-greased baking sheet. Bake in preheated 375° oven for 8-10 minutes.

Icing: While cookies bake, combine confectioner's sugar, vanilla and water. Spread over the tops of cookies while still warm, but not too hot, as icing will melt. Thin with additional drops of water if glaze is too thick. Allow cookies to cool.