Preheat oven to 350ºF. In a large bowl, combine almonds, 1-1/4 cup of the granulated sugar and lemon peel. Beat in eggs.
Divide almond mixture in half. Dust your hands with flour. With floured hands, shape each half of almond mixture into a roll, 1-1/2 inches in diameter. Cut each roll into 18 slices. With floured hands, shape each slice into a ball; sprinkle with flour.
Place balls on an ungreased baking sheet; bake 15 minutes, or until lightly browned. Cool on a rack.
In a small saucepan, combine remaining 1/8 cup granulated sugar and water. Bring to a boil, stirring constantly. Boil until syrup forms, 15 to 20 minutes; do NOT let syrup brown. Pour syrup into a shallow bowl. Cool, then stir in orange juice or liqueur. Dip baked macaroons into syrup, then roll in powdered sugar; set aside to dry.