In a large bowl, cream butter and powdered sugar until light and fluffy. Beat in the oil, egg and vanilla. Add salt and gradually add the flour to creamed mixture and mix well. Beat in poppy seeds and lemon peel.

Shape dough into 1 inch balls and place 1 inch apart on an ungreased cookie sheet. Using a wooden spoon handle, make an indentation in the center of each ball. Spoon 1/4 tsp. preserves into each cookie.

Bake at 324 degrees for 10-12 minutes or until bottoms are lightly browned. Move to wire racks to cool. Makes about 5 dozen.