Soften the cream cheese and butter to room temperature. Beat them together until smooth, then add the granulated sugar and beat for about 2 minutes, until light and creamy.

Beat in the egg and vanilla extract until evenly incorporated. In a separate bowl, whisk together the flour, baking powder, and fine salt.

Gradually add the dry ingredients to the cream-cheese mixture, mixing just until no dry streaks remain. Do not overmix the dough.

Cover the dough and refrigerate it for about 1 hour. Chilling makes the soft dough easier to scoop and helps limit spreading during baking.

Heat the oven to 350°F (175°C) and line baking sheets with parchment paper. Scoop approximately 1 tablespoon of dough per cookie, roll each portion in granulated sugar or powdered sugar if desired, and arrange the portions 2 inches apart.

Bake for 10–12 minutes per tray, until the edges are set and just beginning to color. The centers should still look soft when the cookies come out of the oven.

Let the cookies cool on the baking sheet for 5 minutes, then transfer them to a wire rack. They will firm as they cool while keeping their soft and chewy texture.