Mix softened cream cheese, granulated sugar, and vanilla in a medium bowl until smooth and fluffy. Scoop into 18 portions and freeze for at least 1 hour.

Dice fresh strawberries and combine with sugar in a saucepan. Cook over medium heat, stirring regularly for about 45 minutes until thickened, then cool.

Preheat oven to 350°F (175°C) and line baking sheets with parchment paper. Whisk flour, baking powder, baking soda, and salt in a bowl. Cream butter and sugar in another bowl until light and fluffy, then add egg and vanilla; mix until smooth.

Gradually blend dry ingredients into wet ingredients on low speed until just combined. Let the dough rest at room temperature for about 15 minutes.

Flatten a portion of dough in your palm, add a teaspoon of cooled strawberry jam in the center, encase with dough and gently flatten.

Roll dough balls in sugar and place on the baking sheet, spacing them about 2 inches apart. Flatten slightly for even baking.

Bake for 11-12 minutes until edges are golden. Cool on sheet for 5 minutes before transferring to a wire rack.