In the bowl of a stand mixer fitted with a paddle attachment, beat the 8 ounces cream cheese and 2 sticks of salted butter on medium speed until light and fluffy, about 4 minutes, scraping down the sides as needed.
Add the 1 cup sugar and beat on medium for about a minute more.
Add in 2 cups flour and 2 teaspoons cinnamon beating in on low speed, just until incorporated.
Cover bowl with plastic wrap and place in the refrigerator for at least 45 minutes, and up to 2 hours.
30 minutes prior to baking, heat oven to 375°F. Line 2 large baking sheets with parchment paper and make the topping by combining the 1/3 cup granulated sugar and 1 teaspoon cinnamon together in a small bowl.
Roll cookie dough into balls, about 1 1/2 tablespoons of cookie dough each. Roll the dough balls in cinnamon-sugar topping. Sprinkle extra cinnamon-sugar on top if desired. Arrange 1 inch apart on the baking sheets.
Bake cookies for 15 minutes. The cookies will be very puffy and soft but should be golden around the edges. When they are still very warm, lightly press down on them with the back of a spoon to help flatten them out.
Allow cookies to cool on the baking sheet for 10 minutes, sprinkle tops with cinnamon-sugar and transfer to a wire rack to cool completely.