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In a large bowl, cream together the butter and cream cheese with a hand mixer until smooth.
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Slowly add the powdered sugar and beat until combined.
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Add the egg, baking powder, vanilla, and salt. Mix to combine.
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Add the flour little by little until fully incorporated. Place the dough in the fridge for one hour.
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Preheat oven to 375 degrees.
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Line a cookie sheet with parchment paper and set aside.
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In a small bowl, mix together the 1 tablespoon cinnamon and 1/4 cup of sugar. Set aside.
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Scoop about 2 teaspoons worth of dough and roll into balls. Coat in the cinnamon-sugar mixture. Place on the prepared cookie sheet about 2 inches apart from each other.
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Bake for 8-9 minutes, until just set, making sure to not overbake.
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Remove from the oven and let cool the cookies cool on the baking sheet for 10 minutes.
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Transfer cookies to a wire rack and let cool completely before serving.