Preheat oven to 375° F. Line muffin pans with paper liners.
Whisk the flour, sugar, baking powder and salt together in a large bowl. Set aside.
Using a hand held mixer, using another large bowl, blend the mascarpone cheese, olive oil, lemon rind, lemon extract, lemon juice, and egg together until well blended.
Gradually add the water and blend on low speed until well combined.
Gradually add the flour mixture to the cheese mixture and mix with hand mixer until just combined.
Divide batter evenly between 18 muffin cups. Sprinkle with sanding sugar if desired.
Bake 16-18 minutes or until a toothpick comes out clean after inserted into center of muffin.
Remove from oven and cool completely on a wire rack.