Position a rack in the center of the oven and preheat the oven to 375°F/190oC. Line a baking sheet with parchment paper.
In a large bowl, whisk together the flour, baking powder, baking soda, and salt. Set aside.
In a stand mixer with paddle attachment, beat together on medium-high speed the softened butter, granulated sugar, and cream cheese until light and fluffy, about 2 to 3 minutes.
Add in egg and beat to combine. Scrap down the sides and bottom of the bowl as needed. Beat in vanilla extract.
On low speed, beat in the flour mixture, until a soft cookie dough forms. Do not overmix.
With a small cookie scoop, or two spoons, scoop cookie dough into about 1 tablespoon portions. Roll each cookie dough in your hands, then roll in sprinkles.
Place on the prepared baking sheets, spaced 2 inches apart. Gently flatten each cookie with the palm of your hand to about 1/4" thickness.
Bake in the preheated oven for 10 to 12 minutes, until edges are set, and barely beginning to brown. Remove from the oven and allow cookies to cool on the baking sheet for 5 minutes, before transferring to a wire rack to finish cooling completely.