In a small mixing bowl, combine flour, baking powder, baking soda and salt. Set aside
In a large mixing bowl, beat granulated sugar, cream cheese and 1/2 cup softened butter with electric mixer on medium speed for approx 1 min or until fluffy. Scrape sides of bowl
Add vanilla and egg and beat until combined
On low speed, beat flour mixture into sugar mixture until well combined. Scrape down sides of bowl as needed.
Preheat oven to 350. Cover dough an refrigerate 15 min
Shape dough into balls using your cookie scoop or spoon. Be sure to spread the cookies out on the sheet about 2 inches. Approx 12 cookies will fit on a sheet at a time.
Bake for 15 minutes or until edges are set. Cool 2 minutes on cookie sheet, then transfer to wire rack to cool completely.
While cookies are cooling, whisk together powdered sugar, 1/4 cup softened butter, 2 tbsp milk and 1/2 tsp vanilla. If frosting is too stiff add additional milk 1 tablespoon at a time until you reach the right, spreadable consistency
After cookies have cooled completely, frost and decorate as desired
