In a medium bowl, whisk together the all-purpose flour, baking powder, and salt. Set aside.
Using your hand mixer or stand mixer fitted with the paddle attachment, beat together the unsalted butter, cream cheese, and granulated sugar on medium-high speed.
Add in the egg, vanilla extract, and almond extract.
Chill the dough for a minimum of 1 hour before forming into cookies.
Adjust your oven rack to the 2nd level position, preheat your oven to 350ºF, and line 2 cookie sheets with parchment paper.
Take a small spoonful of dough and roll it into a ball, then in separate bowls, roll it in either the red or green sanding sugar. Place the cookies roughly 1 - 1 ½ inches apart on the cookie sheet. Once filled, take the bottom of a glass and gently push down onto the cookie to flatten a little.
Bake the almond sprinkle cookies 10-12 minutes at 350ºF.
Once done, remove the cookies from the oven and allow to cool on the cookie sheet for about 5 minutes before transferring them to a wire cooling rack.
You can store these in an airtight container with a slice of bread in it for up to 1 week at room temp.