Preheat oven to 350°F. Line baking sheets with parchment paper.
In a stainless steel skillet (or another light-bottomed pan) over medium-high heat, melt butter, swirling the pan occasionally. The butter will begin to foam, which signals the water in the butter is boiling off. (Watch closely at this stage.) Tiny brown specks of milk solids will begin to appear at the bottom of the pan; constantly stir and scrape these off using a spatula so they don’t stick.
As soon as the butter turns chestnut brown and smells nutty, remove the pan from the heat. Pour the browned butter into the bowl of a stand mixer.
To the hot browned butter, add granulated sugar, mixing on low to combine. Set aside to cool for about 15 minutes.
To a medium bowl, add flour, ½ cup confectioners' sugar, baking powder, and salt. Whisk together. Set aside.
After 15 minutes, to the browned butter mixture, add cream cheese, egg, and vanilla. Beat on low until no lumps remain.
Gradually beat the dry ingredients into the butter mixture.
Using a 2-tablespoon cookie scoop, drop the dough onto the lined baking sheets.
Pour the remaining ½ cup confectioners' sugar onto a small plate or bowl.
Roll the dough balls in confectioners' sugar until completely covered and place back onto the lined cookie sheet about 2 inches apart. (I placed approximately 8 dough balls onto each baking sheet.)
Bake for 10-12 minutes, or until they no longer look wet on top.
After about 5 minutes, place on wire racks to cool.