Beat the 1 cup (225g) softened butter and 1 ¼ cups (250g) granulated sugar on medium speed for 3 minutes until pale and fluffy. Add the 2 eggs one at a time, then the 2 tsp vanilla extract, and mix for 30 seconds.

Whisk together the 2 ¾ cups (345g) flour, 1 tsp baking soda, ½ tsp baking powder, ½ tsp salt, and ¾ tsp cinnamon in a bowl. Fold into the butter mixture in 2 additions until just combined.

Mix the 3 tbsp granulated sugar with the remaining ¾ tsp cinnamon. Scoop the dough into 12 balls (about 3 tbsp each), roll in cinnamon sugar, place on a parchment-lined baking sheet, and press to ¾-inch thickness.

Bake at 375°F (190°C) for 11 to 13 minutes until the edges are set and the centers look slightly underdone. Cool on the pan for 10 minutes, then transfer.

Beat the 8 oz (225g) cream cheese and 2 tbsp butter until smooth. Add the 1 ½ cups (180g) powdered sugar, 2 tsp vanilla extract, and 1 tbsp heavy cream and beat on medium-high for 1 minute.

Spoon or pipe the frosting onto fully cooled cookies, dust with remaining cinnamon sugar, and serve.