Cream the softened butter and cream cheese together in a mixing bowl until smooth and creamy, about 2-3 minutes.
Gradually add the powdered sugar, mixing until fully incorporated, then mix in the granulated sugar until fluffy.
Add the egg and vanilla extract, beating until well combined.
In a separate bowl, whisk together the flour, baking powder, ground cinnamon, and kosher salt.
Gradually mix the dry ingredients into the wet mixture on low speed until just combined.
For best results, cover the dough and chill in the refrigerator for at least 30 minutes.
Preheat your oven to 350°F (175°C) and prepare baking sheets with parchment paper.
Using a cookie scoop, portion the dough into balls and roll in the remaining granulated sugar mixed with cinnamon.
Place cookie balls on the baking sheet, spacing them about 2 inches apart, and bake for 10-12 minutes.
Let the cookies cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.