Preheat the oven to 350°F (175°C) and prepare baking sheets.

In a large mixing bowl, cream the full-fat cream cheese for 2–3 minutes until smooth.

Mix in the egg and vanilla extract until fully combined.

In a separate bowl, whisk the blanched almond flour, coconut flour, granulated sweetener, baking powder, and salt.

Combine the dry ingredients with the wet ingredients until no flour streaks remain.

Cover the dough and refrigerate for at least 1 hour.

Scoop approximately 11 balls of dough onto a lined baking sheet.

Bake for 15 minutes until the edges are light golden and centers remain soft.

Cool on the sheet for at least 15 minutes and dust with powdered sweetener if desired.