Add the butter and cream cheese to a large bowl or stand mixer and beat for about one minute.

Add the sugar and mix for another minute.

Add in the egg, vanilla and almond extracts and blend well.

Add 3/4 cup of the flour along with the baking powder. Mix well.

Add the remaining two cups of flour and blend well. The dough will be sticky. 

Cover and refrigerate dough for an hour.

Add sprinkles to bowls (use separate bowls for different types of sprinkles).

When ready to bake, remove dough from the refrigerator. Using a small cookie scoop, gather the dough and then release it into your hand. Roll it with both hands into a ball. Then roll the ball in sprinkles.

Place on a parchment or baking mat-lined cookie sheet. Repeat until all the dough is gone, placing the cookie balls two inches apart. Press each ball down slightly with the bottom of a cup.

Bake at 350 degrees F. for 10-12 minutes, until the edges begin to brown. Let cool for 2 minutes on the baking sheet before transferring to a wire rack to cool completely.

Store in an airtight container.