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Step 1
Cut 1 stick unsalted butter and 4 ounces cream cheese into 8 pieces each, and place in the bowl of a stand mixer (or large bowl if using an electric hand mixer). Let sit at room temperature until softened, about 1 hour.
Step 2
Place 1 3/4 cups all-purpose flour and 1/2 teaspoon baking powder in a medium bowl and whisk to combine.
Step 3
Add 1 cup granulated sugar and 1/4 teaspoon kosher salt to the bowl of butter and cream cheese. Beat with the paddle attachment on medium speed until light and fluffy, about 2 minutes. With the mixer on low speed, beat in 1 large egg and 2 teaspoons vanilla extract. Scrape down the side of the bowl. Add the flour mixture and beat on low speed until just combined, 20 to 30 seconds.
Step 4
Refrigerate the dough for 30 minutes. Meanwhile, arrange 2 racks to divide the oven into thirds and heat the oven to 350°F. Line 2 rimmed baking sheets with parchment paper.
Step 5
Using a spoon or cookie scoop, scoop out 24 (1 1/2 tablespoon each) portions of the dough. Roll between the palms of your hands to form a ball. Place on the prepared baking sheets, spacing them about 2 inches apart, 12 per baking sheet.
Step 6
Bake for 6 minutes. Rotate the baking sheets between racks and from front to back. Bake until the cookies look dry and are pale golden-brown on the bottom, 6 to 7 minutes more.
Step 7
Let the cookies cool on the baking sheet for 2 to 3 minutes. Use a flat spatula to transfer them to a wire rack to cool completely. Lightly dust the cookies with 2 tablespoons powdered sugar before serving.