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Heat oven to 375°F. Line baking sheets with parchment paper or non-stick liner.
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Whisk together flour, baking powder, baking soda, and salt in a medium bowl.
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Beat butter, cream cheese, and granulated sugar in a large bowl until light and fluffy.
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Add egg and vanilla to creamed mixture and beat until well combined, scraping down sides of bowl as needed.
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Add flour mixture and beat at medium speed until dry ingredients are evenly moistened.
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Stir in chocolate chips.
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Place sanding sugar in a shallow bowl or on a small plate.
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Drop tablespoons of dough into the sugar and roll gently to form dough balls coated with sugar.
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Place dough balls 2 inches apart on baking sheets.
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Use the bottom of a 1-cup measure to flatten dough balls to about 1/4-inch thick.
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Bake for 10 to 12 minutes, 10 minutes for softer cookies and 12 minutes for crunchier cookies. (The edges should be golden brown).
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Cool cookies on the baking sheets for 5 minutes then transfer to a wire rack to cool completely.