Mix cold cream cheese, granulated sugar, and vanilla extract until fluffy and smooth, about 3-4 minutes. Scoop into small discs and freeze for at least 1 hour.

Combine diced strawberries and sugar in a saucepan. Cook until thickened, about 10-12 minutes. Cool and chill.

Preheat the oven to 350°F (175°C). Whisk together flour, baking powder, baking soda, and salt. Cream butter and sugar until light and fluffy, then mix in egg and vanilla.

Fold the dry ingredients into the creamed mixture, then add strawberry jam in small pockets without fully mixing.

Scoop dough, flatten slightly, place a cheesecake disc in the center, wrap dough around it, and roll in granulated sugar.

Arrange cookies on a lined baking sheet and bake for 11-12 minutes. Allow to cool on the baking sheet.

Let the cookies cool for 10 minutes before transferring them to a wire rack.