Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a large mixing bowl, cream the butter and granulated sugar until light and fluffy (about 2-3 minutes).

Beat in the egg and vanilla extract until well combined.

In a separate bowl, whisk together flour, baking powder, and salt.

Gradually add the dry ingredients to the wet mixture and mix until a soft dough forms.

Scoop dough using a tablespoon or small cookie scoop and roll into balls. Place them on the baking sheets, spacing them 2 inches apart.

Flatten slightly with the bottom of a glass or your fingers.

Bake for 10-12 minutes, or until the edges are lightly golden.

Let cookies cool on the baking sheet for 5 minutes, then transfer to a wire rack to cool completely.

While cookies cool, prepare the frosting. In a bowl, beat the butter and cream cheese until smooth and creamy.

Gradually add powdered sugar and beat until fluffy.

Mix in vanilla extract.

Once cookies are completely cool, frost each cookie generously with the cream cheese frosting.

Decorate with sprinkles or sugar if desired.

Store in an airtight container in the refrigerator for up to 5 days.