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Lime Snowballs

['1 1/2 cups all purpose flour', '1/2 cup cornstarch', '1 cup (2 sticks) unsalted butter, room temperature', '1/2 cup powdered sugar', '2 tablespoons fresh lime juice', '1 teaspoon (packed) finely grated lime peel', '1/2 teaspoon lime oil*', 'Additional powdered sugar']

Preheat oven to 350°F. Line 2 baking sheets with parchment paper. Whisk flour and cornstarch in medium bowl to blend. Using electric mixer, beat butter and 1/2 cup powdered sugar in large bowl until light and fluffy. Mix in lime juice, lime peel, and lime oil. Beat in flour mixture until smooth. Refrigerate dough until just firm, about 45 minutes.
Using scant 1 tablespoon for each, form dough into balls and place on prepared sheets, spacing 1 inch apart.
Bake cookies until pale golden on top and browned on bottom, about 23 minutes. Transfer baking sheets to racks; immediately sift generous amount of powdered sugar over cookies. Cool cookies completely on baking sheets. (Can be made ahead. Store airtight at room temperature up to 5 days or freeze up to 2 weeks. Dust with more powdered sugar before serving.)
*Available at chefshop.com (877-337-2491) and at Sur La Table stores (call 800-243-0852 for locations).

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