Cream unsalted butter and granulated sugar together until light and fluffy, about 3-5 minutes. Add eggs and both extracts, mixing fully combined.

In a separate bowl, whisk together flour, baking powder, and salt. Gradually mix dry ingredients into the wet mixture until just combined.

Cover dough with plastic wrap and refrigerate for 30 minutes to firm up for easier shaping.

Preheat oven to 350°F (175°C). Scoop about 1 tablespoon of dough, flatten it, and add a teaspoon of peach preserves. Fold dough around filling and roll into a ball.

Roll cookie balls in a mixture of sugar and cinnamon. Place on a parchment-lined baking sheet, spaced apart. Bake for 12-15 minutes until bottoms are golden.

Cool baked cookies on the sheet for 5 minutes before transferring them to a wire rack to cool completely.