In a medium bowl, whisk together the all-purpose flour, granulated sugar, unsweetened cocoa powder, baking powder, and salt until evenly combined.
In a large bowl, use an electric hand mixer to beat the room-temperature cream cheese and unsalted butter until smooth and creamy.
Add the egg, vanilla extract, and red food coloring to the cream cheese mixture and beat until fully incorporated and uniform in color.
Add the dry ingredients to the creamed mixture and beat until a soft dough forms, scraping the bowl as needed.
Cover the dough with plastic wrap and chill in the refrigerator for at least 2 hours until firm enough to handle.
When ready to bake, preheat the oven to 350°F (175°C) and line two baking sheets with parchment paper. Pour the powdered sugar into a shallow bowl.
Roll the chilled dough into 1-tablespoon balls. Roll each ball in powdered sugar to coat, then place on the prepared baking sheets about 3 inches apart.
Bake the cookies for 10 to 12 minutes, until the edges are set but centers remain slightly soft.
Transfer the cookies to a cooling rack and let cool completely.