Beat cold cream cheese with sugar and vanilla extract in a mixing bowl until smooth and creamy, about 2-3 minutes. Spoon the filling into small discs and freeze for 2 hours.

In a medium saucepan, combine diced strawberries and sugar over medium heat. Gently stir and cook for about 45 minutes, mashing halfway through to release juices, until thickened. Remove from heat and cool.

Whisk together flour, baking powder, baking soda, and salt in a mixing bowl to ensure even distribution.

Cream the softened butter and sugar together until light and fluffy, about 3-4 minutes. Mix in the egg and vanilla extract, then gradually add the dry ingredients until just combined.

Flatten a tablespoon of cookie dough in your palm, place a frozen cream cheese disc in the center, add a dollop of cooled strawberry jam, and encase the filling. Shape into a ball and flatten slightly. Roll in sugar.

Preheat oven to 350°F. Place assembled cookies on parchment-lined sheet, spaced apart, and bake for 11-12 minutes until edges are lightly golden.

Once baked, transfer cookies to a wire rack to cool completely before serving.