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Preheat oven to 375°F and line a baking sheet with parchment paper.
In a large bowl, cream the butter and cream cheese with an electric mixer.
Add sugar and beat 1 minute. Add egg and vanilla and mix until combined.
In three additions, add baking powder, flour, and salt, and mix to combine.
Cover dough and chill 1 hour.
Once chilled, dust hands with flour and roll dough into balls between 1-2 inches.
Set out on prepared baking sheet 2-inches apart and flatten gently with your fingers.
Bake 9-11 minutes. The top should remain pale while the bottoms should be golden.
Transfer to a wire rack to cool, then dust with powdered sugar to serve. Enjoy!