Preheat oven to 350°F (175°C). Line baking sheets with parchment paper.
In a bowl, whisk together flour, baking powder, and salt. Set aside.
In another bowl, cream butter, granulated sugar, and powdered sugar with an electric mixer for 3–4 minutes until light and fluffy.
Add egg and beat until combined. Add vanilla extract and cream cheese, mixing until smooth.
Mix in orange extract and fresh orange zest until aromatic.
Gradually add dry ingredients to the wet mixture and mix until just combined.
Divide dough in half. Tint one half with orange food coloring and leave the other plain.
Roll each dough portion into equal-sized logs. Twist the logs together and roll into balls.
Slightly flatten each ball and place them on the baking sheets. Chill for 15–20 minutes.
Bake for 9–11 minutes, or until edges are set but centers are still soft.
Cool on baking sheet for 2 minutes, then transfer to a wire rack.