Preheat your oven to 350°F (175°C) and line an 8x8 inch baking pan with parchment paper, leaving an overhang for easy removal.
In a mixing bowl, cream together the softened butter and 1/4 cup granulated sugar until light and fluffy.
Add the flour, salt, and baking powder to the butter mixture, mixing until just combined. The dough will be crumbly.
Press about two-thirds of the dough mixture firmly into the bottom of the prepared baking pan to form a crust.
In another bowl, beat the softened cream cheese until smooth, then add the powdered sugar, vanilla extract, and egg. Mix until well combined and creamy.
Pour the cream cheese mixture over the crust in the baking pan, spreading it evenly with a spatula.
Crumble the remaining dough over the top of the cream cheese layer.
In a small bowl, combine 1/4 cup granulated sugar and 1 teaspoon cinnamon. Sprinkle this mixture evenly over the crumbled dough.
Bake in the preheated oven for 25-30 minutes, or until the top is golden and a toothpick inserted comes out clean.
Allow the bars to cool in the pan for about 10 minutes, then use the parchment overhang to lift them out and cool completely on a wire rack.
Once cooled, cut into squares and serve.
Notes
Serve on a decorative platter, dusted with powdered sugar and cinnamon.