Preheat the oven to 375 degrees F. Line 2 rimmed baking sheets with parchment paper.
Add the butter and cream cheese to a large bowl, using a hand mixer, beat on medium-high speed until light and fluffy, about 30 seconds. Scrape down the bowl and add the egg and beat again until combined.
In a separate medium bowl, add the flour, chives, baking powder, garlic powder, onion powder, salt and pepper. Add the flour mixture to the butter mixture and beat to combine. Fold the cheese and bacon in by hand.
Spoon a 2 tablespoon sized ball onto the prepared baking sheet and gently press to slightly flatten. Sprinkle on a pinch of pepper. Repeat with the remaining dough.
Bake until lightly golden, about 25 minutes. Serve with room temperature butter and jam if desired.