Gather all your ingredients on your countertop, ensuring the butter and cream cheese are at room temperature.

In a large bowl, beat the softened butter and cream cheese together until smooth and creamy, about 2–3 minutes.

Add the granulated sugar and mix until light and fluffy.

Beat in the large egg and vanilla extract until fully combined.

In a separate bowl, whisk together the flour, baking powder, baking soda, and salt.

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

Cover the bowl and refrigerate the dough for about 30 minutes.

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

In a small bowl, mix together the cinnamon and granulated sugar for coating.

Scoop about 1 tablespoon of dough and roll it into a ball, then roll it in the cinnamon sugar mixture until fully coated.

Place the coated balls on the prepared baking sheets, about 2 inches apart.

Bake for 10–12 minutes, until the edges are set but the centers remain soft. Allow to cool for 5 minutes before transferring to a wire rack.