Soften your butter and your cream cheese thoroughly.
With an electric or stand mixer, cream your butter and cream cheese on medium speed until thoroughly combined, scraping down the sides and bottom of the bowl. Be sure there are no lumps remaining.
Add the sugar, vanilla, and salt, and mix until combined.
Add the egg and egg yolk and mix again until everything is combined, scraping the sides and bottom of the bowl as necessary. You don't want to overmix.
Add the flour and baking powder, and mix on low until just combined.
Use a #40 or 1 ½ inch tablespoon cookie scoop to scoop the cookie dough; level it off flush at the edge. Drop the cookie dough directly into your powdered sugar and roll it around to coat it completely. Repeat with remaining dough.
Place the cookies 2 inches apart on a silicone or parchment-lined mat on a baking sheet; you should get 12 cookies per sheet. Optionally, you can slightly flatten the balls of dough slightly to make wider, flatter cookies.
Bake one sheet at a time at 325F for 14 minutes. The cookies will look underdone and should not brown on the edges or the bottom.
Cool cookies before removing them from the baking sheet. Roll baked and cooled cookies in extra powdered sugar if desired.
Store in an airtight container. Cookies are delightful for up to 3-5 days.
Make Ahead
Dough can be scooped, rolled in powdered sugar, and stored in the refrigerator for up to 5 days. Roll in powdered sugar again before baking. Bake as normal.
Notes
Be sure your butter and cream cheese are thoroughly softened, to prevent lumps.Lower-fat Neufchatel cheese may or may not work in this recipe; I haven't tested it with it. If you have only a partial package of cream cheese, you can substitute strained yogurt for up to ¼ cup (2 ounces) of the cream cheese. To strain, place full fat, unsweetened yogurt in a mesh strainer over a cup for 30-60 minutes. Discard the whey; use the yogurt in the strainer.This dough is very sticky, which is why I dollop it directly into the powdered sugar. You may chill it for an hour or two if desired to make it easier to handle. Follow the make-ahead instructions if preparing in advance. Freezing balls of cookie dough yields cakier cookies that I'm not satisfied with. This recipe was adapted from Wicked Good Kitchen.Calorie count calculated in MyNetDiary and is an estimate only. Recipe updated slightly 8/22/2025.