In a small bowl, combine flour baking powder, and salt. Mix together and set aside.
In kitchen mixing bowl, combine softened butter and cream cheese. Mix until well combined. Add one egg and mix. Stir in vanilla. Slowly add in powdered sugar until well combined.
Add in dry ingredients by the spoonful, mixing until combined.
Once all ingredients have been combined, your dough will still look sticky. At this point, lay a piece of saran wrap on kitchen counter and scoop your dough into the center. Form into a ball and cover with saran wrap. Flatten into a disk and place in fridge.
Chill dough in fridge for at least 2 hours or overnight.
Pre-Heat Oven To 375 degrees. Remove dough from fridge.
Using the reserved 1/2 cup of flour, spread it out on a silicon pastry mat. On your floured surface, roll out cookie dough to about 1/4 inch thick. Using cookie cutters, cut out your cookie dough. Please cookies on baking sheet (I line my baking sheet with unbleached parchment paper).
Bake for 7-9 minutes, until edges are just beginning to brown. Remove from oven and let cool for about 2 minutes. Transfer to wire cooling rack to finish cooling.
Store cookies in air-tight container for up to one week.