Preheat oven to 350°F and line baking sheets with parchment paper.
In a large bowl, cream together butter, cream cheese, and sugar until light and fluffy.
Mix in the egg and vanilla extract.
In a separate bowl, whisk together flour, baking powder, and salt.
Gradually add dry ingredients to the wet ingredients and mix until combined.
Scoop dough and roll into 1-inch balls, then place on prepared baking sheet.
Using your thumb or a spoon, create an indent in each cookie ball.
Fill each indent with about 1/2 tsp of strawberry jam.
Bake for 13–15 minutes, or until edges are lightly golden.
Cool on the sheet for 5 minutes before transferring to a wire rack. Dust with powdered sugar if desired.