In a large bowl, combine softened butter, sugar, softened cream cheese, eggs, and vanilla.
Add flour, baking powder, cocoa powder and salt.
Flatten dough into two, 3 inch thick discs, wrap and chill in the fridge for at least one hour.
Preheat oven to 350 degrees.
One portion at a time, roll dough between two pieces of parchment paper (top and bottom) to ⅛ inch thick.
Remove top piece of parchment paper, cut shapes into dough, and remove excess dough.
Bake at 350 degrees for 8-10 minutes until edges and center are set.
Repeat with remaining dough and scraps, let cookies cool.
In a microwave safe bowl, heat chocolate chips, and evaporated milk, and cocoa powder in 30 second intervals, stirring in between until melted.
Dip completely cooled cookies into melted fudge, cool on a cooling rack with parchment paper underneath to catch drips. Allow to harden (about 20 minutes).
Store, covered, at room temperature for up to 5 days.