Preheat oven to 350°F. Line baking sheets with parchment paper.

In a large bowl, using a hand-held mixer, beat butter, cream cheese, and granulated sugar until blended.

Add in egg and vanilla. Mix well.

Add in flour, baking powder, and ½ cup confectioners' sugar. Gradually beat into the mixture.

Using a 2-tablespoon cookie scoop, scoop dough and then roll in confectioners’ sugar. Place about 6 dough balls on baking sheets.

Bake for 8-11 minutes until they no longer appear wet on top. Cool on wire racks for about 5 minutes before transferring.