Whisk the flour, baking powder, baking soda, and salt together in a medium bowl and set aside.

Beat the softened butter and granulated sugar together until light and fluffy, scraping down the bowl as needed.

Add the whole egg and egg yolk and mix until smooth and glossy.

Mix in the vanilla extract, almond extract if using, and softened cream cheese until fully combined.

Add the dry ingredients and mix just until no streaks of flour remain.

Divide the dough evenly into separate bowls based on how many pastel colors you are using.

Stir gel food coloring into each portion of dough until evenly colored.

Cover the dough and chill for at least 2 hours or overnight.

Preheat the oven to 350°F and line two baking sheets with parchment paper.

Scoop the chilled dough into 1 1/2 tablespoon balls, about 35–40 grams each.

Roll each dough ball in granulated sugar.

Roll again in powdered sugar, pressing lightly for a thick coat.

Place the dough balls about 2 inches apart on the prepared baking sheets.

Bake for 10–12 minutes until the edges are set and the tops are crackled, starting to check at 9 minutes if needed.

Allow the cookies to cool on the baking sheet for 5 minutes before transferring them to a wire rack to cool completely.