Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a large mixing bowl, combine softened butter and cream cheese, and beat until smooth and creamy, about 2 minutes.

Add granulated sugar and beat until light and fluffy, about 3-4 minutes. Then add vanilla extract and mix well.

Add the large egg and beat on low speed until fully incorporated.

In a separate bowl, whisk together all-purpose flour, salt, and baking powder.

Gradually add the dry mixture to the wet ingredients, mixing gently until just combined.

Scoop out portions of dough, roll into balls, and place on the prepared baking sheets, spaced 2 inches apart.

Gently flatten each ball to about half an inch thick.

Bake for 10-12 minutes or until edges are golden brown.

Cool on the baking sheets for 5 minutes, then transfer to a wire rack.

Dust with powdered sugar before serving.