Heat the oven to 350°F and line two baking sheets with parchment paper.

Beat the softened butter and sugar until pale and fluffy, about 3 minutes on medium speed.

Mix in the egg and orange zest until smooth and fragrant with no streaks remaining.

In a separate bowl, whisk together the flour and baking powder until evenly combined.

Gently fold the dry ingredients into the butter mixture, stopping as soon as the dough comes together.

Add the softened cream cheese by swirling it into the dough or placing small dollops into each portion.

Fold the cranberries into the dough, pressing a few on top for a decorative finish if desired.

Scoop dough onto the prepared baking sheets, spacing cookies about 2 inches apart and lightly flattening the tops.

Bake for 10 to 12 minutes until the edges are lightly golden and the centers remain soft.

Let the cookies cool on the baking sheet for 5 minutes before transferring to a rack to set.