Mix cold cream cheese and granulated sugar until smooth and creamy, about 2-3 minutes. Add in vanilla extract and freeze the mixture in small discs for 1 hour.

Combine diced strawberries and sugar in a saucepan over medium heat. Mash half of the strawberries and simmer for about 45 minutes until thickened. Cool completely.

Whisk together flour, baking powder, baking soda, and salt in a bowl. In another bowl, cream butter and sugar until light and fluffy, about 3-4 minutes. Beat in an egg and vanilla extract. Gradually incorporate dry ingredients until just combined.

Fold the cooled strawberry jam into the cookie dough. Preheat the oven to 350°F. Enclose a frozen cheesecake disc within a portion of dough and shape into discs.

Bake for 11-12 minutes until lightly golden around the edges. Reshape cookies if needed while warm.

Cool on the baking sheet for 5 minutes before transferring to a wire rack. Dust with powdered sugar if desired.