Start by creaming together the butter and cream cheese in a large mixing bowl. Using a hand mixer or stand mixer, beat on medium speed until the mixture is smooth and fluffy. It’s important that both the butter and cream cheese are softened to room temperature before you begin. Cold butter and cream cheese will make the dough lumpy and harder to mix.

Once the butter and cream cheese are well combined, slowly add in the powdered sugar. Continue mixing until the sugar is fully incorporated and the mixture is smooth. Next, add the egg, vanilla extract, and a pinch of kosher salt. Beat until the dough is light and fluffy.

In a separate bowl, whisk together the flour, baking powder, and cinnamon. Gradually add the dry ingredients to the wet mixture. Mix on low speed, scraping down the sides of the bowl as necessary. The dough should be soft but slightly sticky. Don’t worry if it’s a bit on the thicker side—it will firm up nicely after chilling.

Now it’s time to chill the dough. Cover the bowl with plastic wrap and place it in the refrigerator for at least 1 hour. Chilling the dough is an important step that helps the cookies keep their shape while baking. It also makes the dough easier to handle when rolling it into balls.

While the dough is chilling, prepare the cinnamon-sugar coating by combining the granulated sugar and ground cinnamon in a small bowl. Stir until well-mixed. This will be used to coat the dough balls before baking, giving your cookies their signature cinnamon flavor.

Once the dough has chilled, scoop out about 1 tablespoon of dough (or about 15 grams per ball) and roll it into a smooth ball. The dough should be easy to handle after chilling. Roll each ball in the cinnamon-sugar mixture until fully coated. Place the coated dough balls on a parchment-lined baking sheet, spacing them about 2 inches apart to allow for some spreading.

Preheat your oven to 375°F (190°C). Bake the cookies for 8-9 minutes. These cookies won’t brown like traditional cookies, so you’ll know they’re done when they’ve puffed up and the edges are set. Be careful not to overbake them; the key is to pull them out while they’re still soft in the center. They’ll firm up as they cool.

Allow the cookies to cool on the baking sheet for about 5-10 minutes. After they’ve cooled slightly, roll them in powdered sugar for the classic snowball cookie finish. This adds a touch of sweetness and a beautiful snowy effect to the cookies. If you want to make them look even more festive, dust them with extra powdered sugar right before serving.

Once the powdered sugar has set, your Cinnamon Snowball Cream Cheese Cookies are ready to enjoy! They’re perfect for cookie swaps, holiday parties, or simply as an afternoon treat with a cup of tea or hot chocolate. These cookies store well for up to a week in an airtight container, so feel free to make them ahead of time for a stress-free holiday season.