Line a baking sheet or plate with parchment paper. In a small bowl, use a whisk or mixer to mix the cream cheese with the icing sugar until smooth and combined. Place 14 heaping teaspoons of cream cheese on the baking sheet or plate. Slightly flatten each ball of cream cheese. Freeze for at least one hour, or until frozen almost completely solid.
When the cream cheese is frozen almost solid, line two large baking sheets with parchment paper and set aside. In the bowl of a standing mixer with the paddle attachment or a handheld mixer, mix butter and sugars until light in color and fluffy (1-2 minutes). Add in the egg, food coloring and vanilla extract, and beat until just combined. Different brands of food coloring will be darker than others, so start with just 1 teaspoon and add more as needed.
Mix in the dry ingredients (flour, cocoa powder, salt, and baking soda) until a dough forms.
Preheat the oven to 350°F. Roll the dough into 2 tablespoon-sized balls of dough and place on the baking sheets, allowing lots of room between each ball of dough.
Remove the cream cheese balls from the freezer and gently press one into the centre of each cookie (you can also use the back of a teaspoon to make an indent). Cover the cream cheese ball with the dough, wrapping it around the cream cheese to cover it completely (photos are in post above for reference)
Roll each ball of dough in granulated sugar until they are coated completely.
Once you've finished assembling one baking sheet of cookies, place them in the fridge while the oven finishes preheating, then repeat the steps with the second batch of cookies.
Bake the cookies one sheet at a time for 9-12 minutes. Remove them from the oven when the edges look set.
Leave the cookies on the baking sheet for 5 minutes, then transfer to a cooling rack to cool completely. Enjoy!