Preheat your oven to 350°F (175°C) and line a baking sheet with parchment paper.
In a medium bowl, whisk together the flour, baking powder, baking soda, salt, and 1/2 teaspoon of ground cinnamon. Set aside.
In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy. Add the egg and vanilla extract, mixing until well combined.
Gradually add the dry ingredients to the wet mixture, stirring until just combined.
In another bowl, mix the softened cream cheese, powdered sugar, and 1/4 teaspoon of ground cinnamon until smooth.
Scoop out a tablespoon of cookie dough, flatten it in your palm, and place about a teaspoon of the cream cheese mixture in the center. Fold the dough over the filling and roll it into a ball. Repeat with the remaining dough and filling, placing the balls on the prepared baking sheet.
Bake for 12-15 minutes, or until the edges are lightly golden.
While the cookies are baking, combine the granulated sugar and 1 teaspoon of ground cinnamon in a shallow bowl.
Once the cookies are out of the oven, let them cool for a few minutes before rolling them in the cinnamon-sugar mixture.
Serve warm or at room temperature.