Makes 4 dozen.

1 cup butter
1 cup granulated sugar
3 ounces cream cheese
2 eggs
1 teaspoon vanilla extract
1/2 teaspoon lemon extract
2 1/2 cups all-purpose flour
1 teaspoon baking powder
1/2 teaspoon baking soda
1 cup coarsely chopped walnuts or pecans
1 cup semisweet chocolate chips

Cream butter, then add sugar, beating until smooth and fluffy. Add cream cheese; blend in eggs, vanilla extract and lemon extract.

Mix flour, baking powder and baking soda together; stir into cream cheese mixture. Add nuts and chocolate chips. Drop by teaspoon onto lightly greased cookie sheet. Bake at 350 degrees F for 12 to 15 minutes.