Preheat oven to 350 °F (175 °C). Line a baking sheet with parchment paper.

In a large bowl, cream together softened butter and 1 cup granulated sugar until light and fluffy.

Beat in eggs one at a time, then stir in vanilla extract.

In a separate bowl, whisk together flour, baking powder, and salt. Gradually add to wet mixture until just combined.

In a small bowl, beat together cream cheese, ¼ cup sugar, and 1 tsp vanilla until smooth — this is the cheesecake filling.

Roll dough into 1-inch balls and flatten each into a circle.

Place a small dollop of cheesecake filling in the center of each flattened dough, then wrap/encase the filling and seal the edges.

Bake for 12–15 minutes, or until lightly golden at the bottom.

Meanwhile, mix 1 cup granulated sugar and 1 tbsp cinnamon in a shallow dish.

When cookies come out warm, roll them in melted butter (if used), then coat in the cinnamon sugar mixture.

Optionally, drizzle with caramel sauce before serving.