Mix ingredients 1-4 (dry) in a medium-sized bowl and set aside. Cream butter, cream cheese, and sugars until well mixed and light – about 2 minutes. Add egg and vanilla, beat for another 1-2 minutes. Add dry mixture to wet slowly, mixing well. This is a sticky batter and you will need to scrape the sides down to make sure it all mixes well. Add chocolate chips and mix to incorporate. Scrape sides down into a ball-ish shape – cover with plastic wrap and chill for at least 2 hours (or Overnight).
When chilled and ready to bake: Preheat oven to 350 degrees. Line a cookie sheet with parchment. Using your hands or a cookie scoop take 1 TBS sized pieces and roll into tight balls. Roll lightly in cane sugar then generously in powdered sugar. Place on a cookie sheet with several inches in between. I get about a dozen per standard sheet. Bake for about 11- 12 minutes. Check at about 9 minutes – if they are not starting to spread, gently shake the tray and then let them finish cooking. They will be soft when they first come out but firm up well. Allow to cool for a few minutes on the tray before removing them and placing them on a wire rack to cool completely.