In a medium bowl, whisk together the all-purpose flour, salt and baking powder. Set aside.
In a large bowl soften the butter and cream cheese, using a fork.
Add the sugar to the butter mixture and beat with a mixer until light and fluffy.
Add in the egg and vanilla extract, and mix just until combined.
Fold in the flour mixture and mix until you get a smooth dough. Divide the dough in half and roll out each piece of dough to ¼ inch thick. Cover with plastic and refrigerate for 15 minutes or until firm.
Preheat your oven to 350° F. Line 2 baking sheets with parchment paper.
Cut out desired shapes using a lightly floured cookie cutter and transfer cookies to baking sheets.
Bake for about 8-10 minutes or until the edges are just starting to brown. Remove from oven and let the cookies cool on baking sheet for a few minutes before transferring to a wire rack to finish cooling.