Gather your ingredients. In a large mixing bowl, combine 8 ounces of softened cream cheese with 1 cup of powdered sugar. Beat on medium speed for about 2 minutes until smooth and creamy. Add 1 egg, 1 teaspoon of vanilla extract, and mix until well combined.
Gradually add 2 cups of all-purpose flour, 2 teaspoons of baking powder, and 2 teaspoons of ground cinnamon. Mix on low speed for about 1-2 minutes until everything is combined, and the dough appears soft and slightly sticky.
Preheat your oven to 350°F (175°C). Prepare your cinnamon sugar coating by mixing ¼ cup of granulated sugar with 1 tablespoon of cinnamon. Roll the dough into 1-inch balls and coat in the cinnamon sugar mixture before placing them on a parchment-lined baking sheet.
Bake for about 12-15 minutes until puffed and golden around the edges. The cookies should feel firm yet soft in the center.
Allow the cookies to cool on the baking sheet for about 5 minutes before transferring them to a wire rack to cool completely.