Whisk together the flour, baking powder, baking soda, and salt in a small bowl.
Add the butter, cream cheese, and sugar to a large bowl. Beat with an electric mixer for about one minute, until fluffy and fully combined.
Add the vanilla extract and egg to the bowl with the butter and sugar and mix for about 30 seconds, until fully incorporated, then add in the flour 1/2 cup at a time, mixing constantly, until the dough is formed.
Chill the dough in the refrigerator for 1 hour, up to overnight.
Preheat the oven to 350 F and line a cookie sheet with parchment paper.
Scoop out the dough by the heaping tablespoon and roll into a ball, then roll each ball in sugar and place 12 dough balls on the baking sheet.
Bake for 10-12 minutes, until the cookies have puffed up and just started to brown, then remove from the oven and let cool.