"Also called Little Sugar Hat Cookies. Why? Because they look like little hats."
Cream butter and white sugar until fluffy. Stir in egg yolk and milk. Add citron to butter mixture and stir in. Add flour and baking powder; blend well. Chill until firm, about 1 hour.
Preheat oven to 350 degrees F (175 degrees C). In a clean, dry, glass or metal bowl, whip egg white until frothy. Gradually incorporate 1 1/2 cups confectioner's sugar; beat until meringue holds its shape. Fold in almonds.
Roll dough 1/8 inch thick on lightly floured board; cut out small rounds with 2 inch cookie cutter. Place 1 inch apart on a greased baking sheet. Put 1 teaspoon Almond Meringue in center of each round to make it look like the crown of a hat.
Bake 10 to 12 minutes in the preheated oven, or until golden. To Make Icing: Gradually add water to 2 cups confectioner's sugar, mixing until icing is stiff. Add 1 to 2 drops of food coloring. When cookies are cool, pipe around crown of hat with Icing to look like a hatband.