Whisk flour, cornstarch, baking powder, and salt in a medium bowl.
Put butter and sugar into the bowl of an electric mixer fitted with the paddle attachment. Mix on medium-high speed until pale and fluffy.
Mix in yolks, lemon zest, and vanilla. Reduce speed to low, and gradually mix in flour mixture. Shape into a disk; wrap in plastic. Refrigerate until firm, about 1 hour.
Preheat oven to 350 F. Transfer dough to a lightly floured work surface. Roll out to 1/8 inch thick. Using a 2½-inch round fluted cutter, cut out wreaths. Cut out centers of wreaths using a 7/8-inch round cutter.
Space 2 inches apart on baking sheets lined with parchment paper. Refrigerate until firm, about 15 minutes. Bake until just golden, about 12 minutes.
Let cool completely on wire racks.
Stir together icing sugar and lemon juice in a small bowl. Dip surface of each cookie in icing, and sprinkle with pistachios and cranberries.
Notes
Time saver: Buy shelled pistachios instead of having to shell your own. Tree ornaments: Since the cookies are wreath-shaped, why not tie some ribbon or string around them and hang a few on your Christmas tree? Decorating them: Make sure you add the pistachios and cranberries while the icing is still wet so they stick.