Preheat your oven to 350°F (175°C). Line your baking sheets with parchment paper.

In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.

In a large mixing bowl, beat the softened butter and cream cheese together until smooth and creamy.

Gradually add the granulated sugar, beating until fluffy and well combined.

Add in the egg and vanilla extract, mixing until fully incorporated.

Slowly blend the dry ingredients with the wet mixture, mixing until just combined—be careful not to overmix.

Chill the dough in the refrigerator for at least 1 hour to firm it up.

After chilling, roll the dough into 1-inch balls and place them 2 inches apart on your prepared baking sheets.

Gently flatten each ball slightly using the bottom of a glass or your palm.

Bake for 12-14 minutes, or until the edges are lightly golden.

Allow the cookies to cool on the baking sheets for 5 minutes before transferring them to a wire rack to cool completely.