In a large bowl, beat the butter on medium speed for 30 seconds. Beat in the cottage cheese, 3/4 cup sugar and the vanilla on medium speed for 1 minute, scraping the bowl occasionally, until fluffy (the mixture may look curdled).
Stir in the flour, baking powder and salt until a dough forms. Place the dough in a zip-top bag and refrigerate for 2 hours or until firm.
Stir together the remaining 1/4 cup sugar and the cinnamon and set aside.
Heat the oven to 375 degrees. On a lightly floured surface, roll the chilled dough into 1/4-inch thickness. Cut the dough into 2 1/2-inch circles. Dip one side of each circle in the sugar-cinnamon mixture. Fold the dough in quarters, cinnamon sides together, pinching the center slightly. Place the cookies 2 inches apart on a parchment-lined baking sheet. Bake for 16 to 20 minutes or until golden brown.
Remove the cookies from the cookie sheet and cool on a wire rack.