Preheat the oven to 325 degrees F.
Grease an 8 inch square baking pan and line it with a strip of parchment paper (I used a nonstick metal pan).
In a small bowl, combine the coconut flour (sift if yours is clumpy), baking powder, collagen peptides, and salt.
In the bowl of a stand mixer fitted with the paddle attachment, cream together the butter, granulated Swerve, and cream cheese until light and fluffy. Scrape the bowl down with a rubber spatula as needed.
Add the egg to the butter mixture, followed by the extract, beating to combine after each addition.
Add the dry ingredients to the butter mixture and beat until thoroughly incorporated. Scrape the bowl down again, and then use the rubber spatula to fold in the sugar-free rainbow sprinkles.
Spread the cookie dough evenly in the prepared pan. I use an offset spatula for this.
Bake the cookies at 325 degrees F for 18-20 minutes, or until the edges have just begun to brown and the center is just set. Allow the cookies to cool in the pan.