In a large bowl, cream together the softened butter and cream cheese using a hand mixer until smooth.
Gradually add the powdered sugar, mixing until fully combined.
Add the egg, baking powder, vanilla bean paste (or extract), and a pinch of kosher salt. Mix well until all ingredients are incorporated.
Slowly add the all-purpose flour to the mixture, blending until fully combined. Scrape down the sides of the bowl as needed.
Cover the dough and place it in the refrigerator for one hour to rest.
Preheat your oven to 375°F (190°C). Line a baking sheet with parchment paper.
In a small bowl, mix together the granulated sugar and ground cinnamon. Set aside.
Roll the dough into 1-inch-sized balls, approximately 2 teaspoons of dough per ball.
Roll each ball in the cinnamon-sugar mixture until fully coated.
Place the coated dough balls on the prepared baking sheet, spacing them about 2 inches apart.
Bake in the preheated oven for 8-9 minutes, until the cookies are just set. Be careful not to overbake; the cookies will puff up but won’t turn golden brown.
Allow the cookies to cool on the baking sheet for 10 minutes before transferring them to a wire rack to cool completely.