Using a food processor or blender, process half (1 cup/24g) of the freeze-dried strawberries into a powdery crumb. Set aside. Reserve the remaining 1 cup of freeze-dried strawberries to beat into the dough in step 3.

In a large bowl using a handheld or stand mixer fitted with a paddle attachment, beat the butter, cream cheese, and sugar together on medium-high speed until creamed, about 3 minutes. Scrape down the sides and bottom of the bowl as needed. Add the egg and vanilla extract and beat on medium-high speed until combined, about 1 minute. Scrape down the sides and bottom of the bowl and beat again as needed to combine.

Add the strawberry powder, flour, baking soda, and salt. Beat on low speed until combined, then increase to medium-high speed and beat until combined. Finally, beat in the remaining 1 cup freeze-dried strawberries just until incorporated. Dough will be thick and sticky.

Cover and chill the dough in the refrigerator for at least 2 hours (and up to 3 days).

Preheat the oven to 350°F (177°C). Line light-colored baking sheets with parchment paper or silicone baking mats.

Scoop dough, about 1.5 Tablespoons (35g) of dough per cookie, and roll into balls. Roll each into granulated sugar and arrange 3 inches apart on the prepared baking sheets.

Bake for 13–14 minutes or until the edges are set. The centers will look very soft, but they will continue to set as they cool.

Remove from the oven and allow cookies to cool on the baking sheet for 10 minutes before transferring to a cooling rack to cool completely.

Make the frosting: Using a food processor or blender, process the freeze-dried strawberries into a powdery crumb. Set aside.

In a large bowl using a handheld or stand mixer fitted with a paddle or whisk attachment, beat the butter and cream cheese on medium-high speed until creamy and combined, about 2 minutes. Add confectioners’ sugar, strawberry powder, and vanilla extract. Beat on low speed for 30 seconds, then gradually increase to high speed and beat for 2 minutes. Taste. Add a pinch of salt if frosting is too sweet.

Spread or pipe frosting on cooled cookies. Garnish with a fresh strawberry slice just before serving, if desired.