Prepare the baking sheet:
Line a baking sheet with parchment paper and set it aside.
Cream the butter and cream cheese:
In a large mixing bowl, use an electric mixer to cream together the softened butter and cream cheese until smooth and well combined.
Add sugar and egg:
Add the granulated sugar to the butter-cream cheese mixture and beat for 1 minute until light and fluffy. Then, add the egg and mix until combined.
Add extracts:
Mix in the vanilla extract and almond extract until fully incorporated.
Add dry ingredients:
Slowly add the baking powder and cake flour in three sections, mixing until the dough comes together.
Chill the dough:
Cover the dough and refrigerate for at least 1 hour to allow it to firm up.
Preheat the oven:
Preheat your oven to 375°F (190°C).
Form the cookies:
Flour your hands and roll the dough into 1-2 inch balls. Place the dough balls on the prepared baking sheet, spacing them about 2 inches apart. Using the bottom of a cup or glass dipped in flour, gently flatten the dough balls. Be careful not to flatten them too much, as they need to puff up during baking.
Bake the cookies:
Bake the cookies for 9-11 minutes. Keep a close eye on them and pull them out of the oven as soon as the underside edges start to turn golden. Baking times may vary depending on your oven and altitude, so watch carefully!
Cool and serve:
Let the cookies cool on the baking sheet for a few minutes before transferring them to a wire rack to cool completely. Enjoy these soft and buttery cream cheese cookies with a cup of coffee or tea.