Combine the softened butter, cream cheese, and granulated sugar with an electric mixer until the mixture is light and fluffy. Stir in the almond extract until it's fully blended.
In a separate small bowl, whisk together the all-purpose flour, baking powder, and salt. Gradually add this dry mixture to your wet ingredients, mixing gently until a soft dough forms. Be careful not to overmix!
Cover the dough and place it in the refrigerator for at least 1 hour. This crucial step helps the dough firm up, making it easier to handle and ensures your cookies hold their shape beautifully.
While the dough chills, preheat your oven to 350°F (175°C). Line a baking sheet with parchment paper to prevent sticking.
Scoop the chilled dough into 30 small, uniform 1-inch balls. Gently roll each dough ball in the colored sugar to coat it completely. Place the sugar-coated balls about 2 inches apart on your prepared baking sheet.
Bake for 12-13 minutes. It’s important not to overbake these cookies, as they should remain soft and tender for the best results.
Immediately after removing the cookies from the oven, gently press a well-drained maraschino cherry into the center of each warm cookie.
Carefully transfer the cookies to a wire rack to cool down fully.
If you'd like an extra touch, melt the white chocolate chips in a microwave-safe bowl. Heat in short 10-15 second intervals, stirring well after each, until smooth and creamy. Use a spoon or fork to artfully drizzle the melted chocolate over the cooled cookies. This also helps secure the cherry in place!
Allow the chocolate to set completely before storing your delightful Cherry Cream Cheese Cookies in an airtight container at room temperature. Share these sweet treats with someone special!