Weight or measure the sugar and set it aside. Next, weigh or measure the flour, baking powder, and salt in another bowl. I run a whisk through to blend the flour mixture. Zest and juice the orange into separate bowls and set the bowls aside.
Cream the butter for a minute or two before adding the sugar. After adding the sugar, mix on medium speed for 3 minutes or until it forms soft peaks. Next, incorporate the orange zest, orange extract, egg. and yellow coloring gel. Finally, scrape down the sides, turn the mixer to a low speed, and slowly add the flour mixture. It will be dry and chunky looking. But if you put some between your fingers, it will remind you of play dough.
Dump the cookie dough onto a pastry mat and knead it together until it becomes a smooth, short-log shape. Divide the dough in half and flatten each half into a disk before wrapping it in plastic wrap. Refrigerate for 30 minutes.
I sprinkled powdered sugar on a pastry mat before adding one of the cookie dough disks, then dust the top of the disk with powdered sugar. I am using a 3/16" band on the ends of my dowel and a 4" round cookie cutter. This will give me a big enough circle to use the stencil.
I got six cookies to a parchment-lined sheet pan. Bake at 350°F (175°C or 180°C) for 8-10 minutes. Leave the cookies on the pan after taking them out of the oven; moving them after they cooled on the sheet pan is easier. Then, move to a cooling rack. You need the cookies solid before icing and stenciling them.