In a small bowl, combine ¼ cup of the sugar and the cinnamon.
In a large bowl, beat the ¼ cup butter and the cream cheese with a mixer on medium for 30 seconds. Add the remaining 1 cup of sugar and baking powder. Beat until combined, scraping bowl as needed. Beat in egg and vanilla. Beat in flour. Divide the dough in half. If necessary, wrap and chill until the dough is easy to handle, about 1 hour.
Roll one portion of dough at a time between pieces of waxed paper to a 12×8-inch rectangle. Remove top sheets of waxed paper. Brush each rectangle with half of the melted butter. Sprinkle each with 2 Tbsp. of the sugar-cinnamon mixture.
Beginning with one of the short sides, carefully roll each dough rectangle up, using the waxed paper to lift and guide the roll. Moisten the edges to pinch and seal. Roll each in the remaining sugar-cinnamon mixture. Wrap in plastic wrap or waxed paper. Chill until firm enough to slice, 4 to 24 hours.
Preheat oven to 375°F. Line cookie sheets with parchment paper. Use a sharp knife to cut rolls into ¼-inch slices. Place slices 1 inch apart on prepared cookie sheets. Bake until edges are firm, 8 to 10 minutes. Cool on cookie sheets 1 minute. Transfer to a wire rack; cool completely.
