In a medium size bowl, whisk together flour, baking powder, baking soda, and salt. Set aside.
In a pie plate, pour ⅓ cup of granulated sugar. Set aside.
In a large bowl, pour 1 and ½ cups sugar and cream cheese. Add the still warm melted butter; whisk until combined - mixture will not be completely smooth. Add oil, egg, milk, and vanilla extract; mix until combined and smooth.
Using a rubber spatula, fold in dry ingredients AND 1 cup of patriotic M&M's chocolate candies; mix just until combined and a soft dough is forms. Do Not Over-Mix!
Scoop dough into 2 tablespoon rounds, or use a #40 disher to scoop balls of dough; roll balls of dough in sugar previously placed in pie plate. Place on a silicone mat/parchment paper-lined baking sheet 2-3" apart. Cookies will spread. Using the bottom of a cup slightly flatten balls of dough into 2" discs.
Bake 10-12 minutes or until barely golden brown around the edges. Do not overbake. Cookies may appear to be soft and undone, but they will set as they cool.
Immediately remove cookies and press M&M's into the tops of the cookies.
Cool cookies on baking sheet on wire rack for 5 minutes; transfer to a wire rack to cool completely. Eat & Enjoy!
Notes
Patriotic M&M Cookies should be stored in an airtight container and will keep 4+ days.Recipe from The Girl Who Ate Everything.