Combine sugar and almond extract and stir well. Set aside.
In large mixer mix, mix butter, cream cheese, flour, baking powder, and salt. Low speed until dough forms. Knead on floured surface until smooth.
Divide in half. Roll first half into large rectangle. Sprinkle with 3 T sugar mixture. Fold in thirds, rotate 1/4 turn. Roll out and repeat 2 more times. Roll out a third time and cut into 36 cookies - 12x3.