Preheat Oven: Preheat your oven to 350°F (175°C). Line a baking sheet with parchment paper.

Cream Butter and Cream Cheese: In a large mixing bowl, beat the softened butter and cream cheese together until smooth and creamy, about 2-3 minutes.

Add Sugar and Wet Ingredients: Add the granulated sugar and beat until light and fluffy. Then add the egg and vanilla extract, mixing until well combined.

Mix Dry Ingredients: In a separate bowl, whisk together the flour, baking powder, salt, and ground cinnamon.

Combine Wet and Dry: Gradually add the dry ingredients to the wet ingredients, mixing until a soft dough forms. Be careful not to overmix.

Make the Cinnamon Sugar Coating: In a small bowl, mix together the 1/4 cup granulated sugar and 1 teaspoon ground cinnamon for coating.

Form the Cookies: Scoop tablespoon-sized portions of dough and roll them into balls. Roll each ball in the cinnamon sugar mixture, coating it evenly.

Bake: Place the coated dough balls on the prepared baking sheet, spacing them about 2 inches apart. Bake in the preheated oven for 10-12 minutes, or until the cookies are lightly golden around the edges and set.

Cool and Serve: Allow the cookies to cool on the baking sheet for a few minutes before transferring them to a wire rack to cool completely.