Step 1: In a large bowl, using an electric mixer, cream together the softened butter and softened cream cheese until light and fluffy.
Step 2: Gradually add the granulated sugar to the butter and cream cheese mixture, beating until well combined and fluffy, about 2-3 minutes.
Step 3: Beat in the large egg, vanilla extract, and almond extract until fully incorporated. Scrape down the sides of the bowl as needed.
Step 4: In a separate medium bowl, whisk together the all-purpose flour, baking powder, and salt.
Step 5: Gradually add the dry ingredients to the wet ingredients, mixing on low speed until just combined. Be careful not to overmix the dough.
Step 6: Cover the dough with plastic wrap and chill in the refrigerator for at least 30 minutes (or up to 1 hour) to help prevent spreading.
Step 7: Preheat your oven to 375°F (190°C). Line baking sheets with parchment paper.
Step 8: Roll the chilled dough into 1-inch balls and place them about 2 inches apart on the prepared baking sheets. You can lightly flatten them with the bottom of a glass if desired.
Step 9: Bake for 10-12 minutes, or until the edges are lightly golden and the centers are set. Do not overbake to keep them soft.
Step 10: Let the cookies cool on the baking sheets for 5 minutes before transferring them to a wire rack to cool completely. Decorate once fully cooled.