Prep: Preheat oven to 325°F (163°C). Line baking sheets with parchment paper or use a Silpat baking mat.
Cream Butter and Cream Cheese: In a large mixing bowl, use an electric mixer to beat the softened butter and cream cheese together until smooth and creamy (about 2 minutes).
Add Sugar and Wet Ingredients: Add granulated sugar and beat until fluffy. Mix in the egg yolk and vanilla extract until fully incorporated.
Add Dry Ingredients: Gradually add the flour and salt, mixing on low speed until just combined. The dough should be soft but not sticky. (If it feels too sticky, add an extra tablespoon of flour.)
Form Cookies: Scoop or roll dough into 1-inch balls and place them about 2 inches apart on the prepared baking sheets. For a flatter cookie, gently press the tops with the bottom of a glass.
Bake: Bake for 12-15 minutes, or until the bottoms are lightly golden and the tops look set but still pale.
Cool and Finish: Let cookies cool on the baking sheet for 5 minutes before transferring to a wire rack. Once completely cool, dust lightly with powdered sugar and enjoy!
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Notes
Use real butter, not margarine, in this recipe for the best results.
Make sure you place your dough in the refrigerator for 10-15 minutes before baking.
These large cookies tend to expand a lot, so make sure you give them plenty of room on your cookie sheet! I made these in two batches (6 per cookie sheet).
Definitely wrap the entire Nutella dollop even if you think it will meltdown to cover them.
Depending on the size of your cookie, this recipe makes 10-12 cookies.
Nutritional information is approximate and was calculated using a recipe nutrition label generator and will vary based on cooking methods and brands of ingredients used.