Using an electric mixer, combine the butter, cream cheese, and sugar. Beat on medium-high speed until the mixture is light and fluffy. Add the egg, vanilla extract, and almond extract, if using. Beat again until incorporated.
Sprinkle flour, baking powder, baking soda, and salt on top of the dough. Beat on medium-low speed just until the streaks of flour disappear. Place dough in the refrigerator to chill for 15-20 minutes.
Preheat oven to 375 degrees F. Prepare two baking sheets by lining with parchment paper or silicone baking mats. Pour sprinkles out into a small, shallow bowl.
Once dough has chilled, scoop it out into balls of approximately 1 and 1/2 tablespoons each. Roll each scoop gently in your hands to make a smooth ball, then roll each in the sprinkles and turn to coat evenly. Arrange on the baking sheets, and use your hand or the bottom of a drinking glass to flatten each cookie slightly.
Bake about 10 minutes for soft cookies, or about 12 minutes for a slightly more crisp texture. Let cool for 10-15 minutes on the baking sheets before transferring cookies to a wire rack. Enjoy!
Notes
Sprinkles: You can use pretty much any type of sprinkles you like for these cookies, which is one of the reasons they're so convenient. Jimmies, nonpareils, and sparkling or sanding sugar all work well.
Storage: Cookies keep well tightly covered or stored in an airtight container at room temperature for 3-4 days. The baked cookies do not need to be refrigerated unless you prefer it for taste and texture; according to LiveStrong: "baked items that are made with a small amount of cream cheese are considered low risk if left out at room temperature ... the flour and sugar in the baked goods tend to absorb excess moisture, reducing the risk that bacteria can grow and multiply as quickly."
Freezing: Rolled but un-sprinkled, un-baked cookies can be stored in the freezer for up to 3 months. Place the rolled cookie dough balls on a baking sheet or plate with space between them, then place in the freezer for 30-60 minutes to flash freeze. They can then be transferred to a freezer-safe storage container, touching each other, and stored until you wish to bake.
To Bake From Frozen: Roll the frozen dough balls between the palms of your hands for a few seconds, until they are warm enough for the sprinkles to adhere. Bake as directed at 375 degrees F, adding 2-3 minutes to the baking time.