Preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper or silicone mats to prevent sticking. Make sure your cream cheese and butter are softened to room temperature for easy mixing.
In a medium bowl, whisk together the all-purpose flour, granulated sugar, cocoa powder, baking powder, and salt.
Using an electric mixer, beat the softened butter and cream cheese in a large bowl until smooth and creamy, about 2-3 minutes.
Beat in the egg, vanilla extract, and red food coloring until the mixture is fully combined and bright red.
Gradually add the dry ingredients into the wet mixture, mixing on low speed until just combined. Avoid overmixing.
Scoop the dough with a tablespoon or cookie scoop onto the prepared baking sheets, spacing them about 2 inches apart. Bake for 10-12 minutes or until the edges are set but the centers still look slightly underbaked.
Allow cookies to cool on the baking sheet for 5 minutes before transferring them to a wire rack to cool completely. Once cooled, sift powdered sugar over the tops.