Cream together the butter and cream cheese until smooth and creamy. Slowly add powdered sugar. Mix to combine.
Add vanilla and then eggs one at a time.
In a separate bowl combine flour, salt, baking powder and cinnamon. Incorporate dry ingredients to the cream cheese mixture.
Chill covered for at least one hour.
Preheat oven to 350°F. In a small bowl combine cinnamon and sugar.
Roll dough into balls using about 2 heaping teaspoons of dough per cookie. Roll in the cinnamon sugar mixture.
Bake 10-12 minutes until set. Let cool 5 minutes before removing to cool completely on a wire rack.