In a large mixing bowl, cream together the butter, cream cheese, and granulated sugar using an electric mixer until smooth and fluffy.
Add almond extract and mix until incorporated.
In a separate bowl, whisk together flour, baking powder, and salt. Gradually add the dry mixture to the creamed mixture and blend until just combined.
Cover and refrigerate the dough for 1 hour to firm up.
Preheat the oven to 350°F (175°C). Line a baking sheet with parchment paper.
Shape the chilled dough into 1-inch balls and roll each ball in colored sugar.
Place the dough balls 2 inches apart on the prepared baking sheet.
Bake for 12-13 minutes, being careful not to overbake. The cookies should remain soft.
Immediately press a maraschino cherry into the center of each cookie while still warm.
Optional: In a microwave-safe bowl, melt the white chocolate chips in 10-15 second intervals, stirring between each session. Drizzle the melted chocolate over the cookies.
Allow the cookies to cool completely and let the chocolate set before storing them in an airtight container.