Preheat oven to 350 degrees F. Line 2 cookie sheets with parchment paper.
In a medium bowl, add the 2 ¼ cups all-purpose flour, 2 teaspoons baking powder, and ¼ teaspoon salt. Whisk until combined and set aside.
In a large bowl, add the ½ cup butter, 8 ounces cream cheese, and 1 ½ cups granulated sugar. Beat on medium speed until it comes together into a light creamy mixture.
Add the 1 large egg, ½ teaspoon almond extract, and 1 teaspoon vanilla extract. Continue to beat until the egg is combined.
Stir the dry ingredients into the wet ingredients until just combined.
Stir in the 1/3 cup festive sprinkles, reserving a few to sprinkle on top of cookies.
Using a 1 tablespoon cookie scoop, scoop the dough and roll in the ½ cup powdered sugar until well coated.
Place the cookie dough 2 inches apart on the prepared cookie sheets.
Place in the preheated oven and bake for 9 minutes. The cookies should be set around the edge, but not yet brown, and look “crinkled” on top
Notes
Storage: Place the cookies in an airtight container or sealed bag and store at room temperature for up to 5 days.Freeze: Place the room temperature cookies in a freezer-safe container or freezer bag. They're last up to 3 months in the freezer.