In a mixing bowl, combine cream cheese, granulated sugar, and vanilla extract using a hand mixer, beating until fluffy and well combined. Scoop the mixture into small discs and freeze for about 1 hour.

Combine diced fresh strawberries and sugar in a saucepan over medium heat. Stir and simmer for 10-15 minutes until thickened. Let chill completely.

Whisk together flour, baking powder, baking soda, and salt. In a separate bowl, cream softened butter and granulated sugar until light and fluffy. Add egg and vanilla extract, mixing until well combined.

Gently fold the cooled strawberry jam into the dough creating swirls.

Preheat oven to 350°F (175°C) and line a baking sheet with parchment. Portion out the dough, place a frozen cheesecake disc in the center, and seal the dough.

Roll each cookie in granulated sugar and bake for 11-12 minutes until edges are golden. Allow to cool on the baking sheet.