Prepare for baking. Line a baking sheet with parchment paper to prevent sticking.
Combine butter and cream cheese. Using an electric mixer, cream together the softened butter and cream cheese until smooth and well blended.
Add sugar and egg. Beat in the granulated sugar for about one minute, then add the egg and continue to beat until fully combined.
Incorporate extracts and dry ingredients. Mix in the vanilla and almond extracts. Gradually add the baking powder and cake flour in three parts, mixing just until the dough comes together.
Chill the dough. Cover the dough and refrigerate for at least one hour to firm up, which will make handling the dough easier.
Preheat and shape cookies. Preheat the oven to 375°F. With floured hands, roll the dough into 1-2 inch balls. Use a floured cup bottom to slightly flatten each ball on the prepared baking sheet.
Bake until golden. Bake the cookies for 9-11 minutes, or until the edges just start to turn golden. Keep a close eye on them to prevent over-baking.