Place cream cheese in freezer until firm but not solid, about 25 minutes. Heat oven to 350°F.
In large bowl, break up cookie dough. Stir or knead in flour and lemon peel until well blended.
Cut firm cream cheese into 72 (1/4-inch) cubes.
Shape level measuring tablespoonful of dough into ball. Make 3 indentations with end of wooden spoon. Fill each indentation with 1 cube cream cheese. Wrap dough around cream cheese to completely enclose, and shape into ball. Place on ungreased cookie sheet. Press 4 or 5 blueberries into each ball of dough.
Bake 10 to 14 minutes or until edges are light golden brown. Cool 5 minutes; remove from cookie sheet to cooling rack. Cool completely. Sprinkle with powdered sugar.