In a large bowl, mix together butter, sugar, eggs, and vanilla and lemon extracts with an electric mixer until light and fluffy. Combine the flour, baking powder, and baking soda; gradually stir in milk to flour mixture until well blended but do not overmix -- cookies will get tough. Chill dough.
Preheat oven to 350°F On a lightly floured surface, roll out the dough to 1/4 inch thickness. Cut into desired shapes using cookie cutters. Place cookies 2 inches apart onto ungreased cookie sheets.
Bake for 10 minutes in the preheated oven. Remove cookies from pan and cool on wire racks.