Peel, core, and finely dice the apple. Add butter to a small skillet over low to medium heat until just melted. Add the apples, brown sugar and spices and stir together well. Cook until just softened. Remove from heat and allow to cool
In a medium bowl, whisk together flour, baking powder, and spices
In the bowl of a stand mixer on med-high, cream the softened butter and cream cheese on medium speed until thoroughly combined, making sure there are no lumps.
Add Sugar and Vanilla to the wet ingredients
Add the egg and egg yolk, and mix until combined, scraping down the sides and bottom of the bowl as necessary to ensure even mixing
Add the dry ingredients to the wet ingredients and mix until well combined
Gently fold the diced apples into the dough until they are evenly distributed
Refrigerate for at least one hour
Using a large cookie scoop, or your hands, drop batter onto a prepared baking sheet 2 inches apart
The batter is a bit sticky, so you may need to rinse the cookie scoop in hot water in between scooping cookie dough onto the baking sheet.
Roll each cookie dough ball in powdered sugar and place back on sheet
Bake at 325°F for 18-20 minutes, checking for doneness. The cookies should look set but not browned, and still a little undercooked. Leave them on the baking sheet for 10 minutes to allow them to continue baking.