Preheat the oven to 350°F (175°C) and line two baking sheets with parchment paper.

Beat the softened butter, cream cheese, and sugar until smooth and creamy.

Add the egg and vanilla extract, then mix until fully combined.

Whisk together the flour, cinnamon, baking powder, and salt in a separate bowl.

Gradually add the dry ingredients to the wet mixture, mixing just until a soft dough forms.

Cover the dough and refrigerate for 30–45 minutes.

Scoop about 1½ tablespoons of dough per cookie and roll into balls.

If desired, combine the coating sugar and cinnamon, then roll each dough ball in the mixture.

Arrange the dough balls on the prepared baking sheets, leaving about 2 inches (5 cm) between each cookie.

Bake for 10–13 minutes, until the edges look set and the bottoms turn lightly golden.

Let the cookies rest on the baking sheets for 5 minutes, then transfer them to a wire rack to cool.

Serve and enjoy, or refrigerate the cooled cookies in an airtight container for up to 5 days.