Preheat oven to 375 degrees. Prepare two large baking sheets with silicone baking mats or parchment paper. Set aside while we make the dough.
In the bowl of a large food processor, add flour, baking powder, baking soda, and salt. Cover and pulse to combine. Remove cover and add cold butter and cold cream cheese and sugar. Cover and pulse until the mixture has turned to powder and the butter and cream cheese are no longer in chunks.
Add egg and extracts through the feeder at the top. Cover and turn processor on. Run until the mixture turns to dough and forms a ball. This should take no more than 1 minute. If it takes longer, pause and scrape down the sides to ensure the moisture reaches all of the dough evenly.
Once the dough has formed, remove the blade from the food processor. Form dough into balls using a cookie scoop (about 1.5 tablespoons). Roll each ball of dough into a bowl with the sprinkles, pressing the sprinkles into the exterior of the dough ball.
Place dough balls onto prepared baking sheets about 2 inches apart. Bake one sheet at a time for 9-10 minutes or until the bottoms turn golden brown. Remove from oven and let cool on baking sheet for 5 minutes and then remove to finish cooling on a rack. Enjoy once cooled enough or let them sit longer and the edges will firm up even more for a pleasant crunch.