Preheat oven to 350°F and line a 9x13 baking sheet with parchment paper.
In a medium bowl, whisk the flour, baking powder, baking soda, salt, and 1 tsp cinnamon. Set aside.
In the bowl of stand mixer fitted with the paddle attachment, place the butter and sugar. Beat on medium-high speed until light and fluffy (about 2-3 minutes).
Add half of the cream cheese and beat in on medium speed. Scrape down the sides of the bowl to make sure everything is mixed evenly.
Add the remaining cream cheese and cinnamon extract and continue mixing until just combined.
Reduce mixer speed to low and gradually add the bowl of dry ingredients. Mix until just combined.
In a small bowl, whisk the remaining sugar and cinnamon.
Use a small cookie scoop or your hands to form the cookie dough into balls about an inch in diameter.
Roll each ball in the cinnamon sugar mixture and transfer to the prepared baking sheets. Leave 2 inches of space between each cookie.
Bake for 10-12 minutes or until the cookies are lightly golden brown. Let them rest for 5-10 minutes before transferring to a cooling rack.