Funfetti Thumbprint Cookies

Step 1
Whisk together flour, baking powder, baking soda, salt, and nutmeg in a bowl.

Step 2
Beat butter and cream cheese together in a large bowl with an electric mixer until smooth; beat in white sugar and brown sugar until light and fluffy. Add in egg, vanilla extract, and almond extract; beat until thoroughly combined. Add flour mixture in two batches on low speed, mixing just until combined; fold in sprinkles. Cover dough; refrigerate for at least 1 hour or up to overnight.

Step 3
Scoop dough by tablespoonfuls, and roll into balls. Place dough balls onto a plate and return to the refrigerator while preheating the oven.

Step 4
Preheat the oven to 350 degrees F (175 degrees C). Line two baking sheets with parchment paper. Place dough balls 1 inch apart on prepared baking sheets.

Step 5
Bake in the preheated oven until cookies are just set, 10 to 12 minutes. With the handle of a wooden spoon or spatula, immediately poke an indentation into each cookie about 1/2-inch wide and 1/2-inch deep; dip the end of the spoon or spatula into sugar as needed to keep it from sticking. Remove cookies from baking sheets to a wire rack to cool completely, about 20 minutes.

Step 6
Place white chocolate chips and heavy cream in a microwave-safe bowl. Microwave for 30 seconds; stir until white chocolate is completely melted. Fill each cookie with about 1/2 teaspoon white chocolate ganache. If desired, sprinkle with more rainbow sprinkles before ganache sets.