Whisk the flour, baking powder, and salt together until combined. Set aside.

In a large bowl using a handheld or stand mixer fitted with a paddle attachment, beat the butter and cream cheese together for 2 minutes on high speed until completely smooth and creamy. Add the granulated sugar and beat on medium high speed until fluffy and light in color. Beat in the egg, vanilla, and almond extract on high speed. Scrape down the sides and bottom of the bowl as needed.

On low speed, slowly mix the dry ingredients into the wet ingredients until combined. The cookie dough will be thick. Cover dough tightly with aluminum foil or plastic wrap and chill for 1 hour and up to 3 days.

Remove cookie dough from the refrigerator. If the cookie dough chilled longer than 3-4 hours, let it sit at room temperature for about 20 minutes. This makes the cookie dough easier to scoop and roll.

Preheat oven to 350°F (177°C). Line two large baking sheets with parchment paper or silicone baking mats. (Always recommended for cookies.) Set aside. Pour the 1/2 cup of granulated sugar into a bowl.

Scoop and roll balls of dough, about 1.5 Tablespoons of dough each (I like using this medium cookie scoop). Roll each ball into granulated sugar then place on the baking sheets about 3 inches apart. Using the back of measuring cup or drinking glass, gently press down on each (see photo above).

Bake the cookies for 13-15 minutes, or until very lightly browned on the edges. My oven has hot spots and yours may too- so be sure to rotate the pan once during bake time. The baked cookies will look extremely soft in the centers when you remove them from the oven. Allow to cool for 5 minutes on the cookie sheet. Transfer to cooling rack to cool completely before frosting.

In a medium bowl using a handheld mixer or stand mixer fitted with a whisk attachment, beat the cream cheese and butter together on medium-high speed until creamy and no lumps remain, about 2 minutes. Add the confectioners’ sugar and vanilla extract. Beat on low speed for 20 seconds then increase to high speed until everything is completely combined and the frosting is creamy. Taste. Add a pinch of salt if frosting is too sweet. Spread on each cooled cookie, then decorate with sprinkles.

Cookies stay fresh covered at room temperature for up to 3 days or in the refrigerator for up to 1 week.