In a large bowl, using a hand mixer or a stand mixer, cream together the butter and cream cheese until smooth (medium speed), about 1 minute.
Add powdered sugar in the bowl a little at a time until fully mixed. Scrape down the sides as needed. Add in egg and vanilla, mix to combine.
In a small bowl, whisk together baking powder and flour. Add the dry mixture to the wet mixture a little at a time until fully incorporated. Scrape down the sides as needed. Stir in the crushed cookies and mix until just combined.
Cover and place the cookie dough in the fridge for a minimum of 2 hours. (The dough must be very cold before baking or the cookies will spread.)
Place tablespoon sized balls of the cookie dough onto a parchment lined baking sheet. Bake at 350F for 9-10 minutes until they are just set. You will know the cookies are ready when they no longer look wet.
Allow cookies to cool completely before removing from baking sheet.
Video
Notes
Makes 3 dozen cookies. Calories are automatically generated. For best results calculate based on your exact ingredients.