Preheat oven to 375° F. Line baking sheet with parchment paper.
Whisk the baking powder into the cake flour. Set aside.
Cream together the butter and cream cheese with an electric mixer. Add the sugar and beat for 1 minute. Add egg and the extracts and beat until combined.
Two tablespoons at a time, add the cake flour mixture and continue mixing until just combined. Be careful to not over mix. This is a sticky dough.
Refrigerate the dough for an hour.
Sprinkle a little flour onto clean hands and roll the dough into 1 inch balls.
Dip a flat bottomed glass into flour and gently press each ball to flatten just a tiny bit. Don't flatten too much or the cookies will not have a puffy cloud-like texture.
Bake for 9-12 minutes.
NOTE
KEEP AN EYE ON THESE BEAUTIES! Remove them from the oven the second the edges turn golden.
Immediately place them on a cooling rack to cool.
ICING
To make the icing, whisk together the powdered sugar, vanilla, and water until well combined.
Drizzle the cooled cookies with the icing and sprinkle away.