Preheat your oven to 350 degrees Fahrenheit. Line two large baking sheets with parchment paper or silicone baking mats to prevent the cookies from sticking and to ensure an even bake.
In a large mixing bowl, beat the softened cream cheese and softened butter together using a hand mixer or stand mixer. Continue mixing on medium speed until the mixture is completely smooth and fluffy, which usually takes about two to three minutes.
Add the egg and the alcohol-free vanilla extract to the cream cheese mixture. Beat again until the egg is fully incorporated, scraping down the sides of the bowl with a spatula as needed to ensure everything is well combined.
Turn the mixer to low speed and gradually pour in the gluten-free yellow cake mix. Mix just until the flour disappears and a thick, sticky dough forms. Be careful not to overmix, as this can affect the final texture of the cookies.
Because the dough is quite sticky, it is helpful to chill it in the refrigerator for at least 30 minutes. This makes the rolling process much cleaner and helps the cookies hold their shape better in the oven.
Scoop about one tablespoon of dough at a time and roll it into a ball between your palms. Roll each ball generously in the bowl of powdered sugar until it is completely coated. Place the balls on the prepared baking sheets, leaving about two inches of space between each one.
Bake for 10 to 12 minutes. The cookies should look set on the edges but still appear slightly soft and underdone in the center. Allow them to cool on the baking sheet for five minutes before moving them to a wire rack to cool completely. They will firm up as they cool down.
