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Preheat oven to 350. Line a large cookie sheet with parchment paper.
Cream together the butter, cream cheese, and sweetener with an electric mixer. Add in the egg yolk and vanilla and mix.
Add in the rest of the dough ingredients and mix until incorporated.
With a large cookie scoop, scoop dough into 10 balls, and roll in the additional powdered erythritol. Place the balls of dough on the prepared baking sheet. Press down gently until they are half an inch high.
Bake for 10-12 minutes until they are barely golden and no longer look wet on top. Do not over bake or you will lose the gooey butter cookie texture.
Store at room temperature for 2-3 days. For longer storage they can go in the refrigerate but need to be warmed before serving for the right texture.