In a large bowl, combine butter and cream cheese and beat until light and smooth. Mix in powdered sugar until fully combined.
Add in egg and vanilla and mix until smooth.
In a small bowl, sift together flour, baking powder, and salt. Slowly incorporate the dry ingredients into the wet.
Cover bowl and chill dough in the fridge for a minimum of 60 minutes.
When ready to bake, preheat oven to 375 degrees F and line a baking sheet with parchment paper.
Sift together sugar and cinnamon in a small bowl.
Scoop and roll dough into balls about 1 inch in diameter and then roll all sides in cinnamon mixture.
Arrange on baking sheet a couple inches apart (as they will spread).
Bake for 8-10 minutes.
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