Although Schipol is close to the city, you don't have time to get in and out.

Even if you have already allowed for ttrave time, most shops don't open until 9:30 or 10:00.

Schipol has some great shops, decent places to eat and even a branch of the Rijksmuseum.

I would stay put.

Oh! i didnt mention...in all, i have about 4 hours in amsterdam (from the time my flight lands - 6 50 am till the next one takes off at 12 pm)...so the 1-2 hours was the time i had expected to have outside the airport...

Given how close the airport is, you could get in and out. See how you are doing for time once you're through Immigration. Just follow the signs to the trains.

Don't forget you will have to go back through Security prior to your connecting flight and get to the gate--some are quite far.

Seriously, lots to do at the airport.

Depending on where you are coming from and going to I really don't think you have time to get in and out of the city tbh.
If you are flying within Schengen then you might get away with it but I doubt it - your plane may land at 6.50 but it could be nearer 7.30 before you disembark. Then you need to get through passport control, get a train ticket and a train, at rush hour, which takes you up to about 8.15 to 8.30 am, and you need to be back to go through security again at no later than 11, which means getting a train again by 10.30.
Assuming everything runs on time that is, which it may not.

Shops aren't open early, and the area around the station is not that brilliant anyway. Cafés also aren't normally open very early.
Is it worth the hassle and worry?

If you are going to a non Schengen country you need to be back at your gate even earlier, and go through passport control twice too.

Schiphol is a lovely airport with enough to do to pass your time without risking your connection. Enjoy a leisurely breakfast, do some shopping either air-side or go through passports to land-side where there are masses of shops. Go up on the viewing deck if it is a nice day, visit the Rijksmuseum at Schiphol. Potter, relax before your onward flight.

While it does not help with you this time, the next time you find yourself looking at itineraries including a layover in a city you want to spend some time, you can sometimes choose flight combinations with longer layover without none or very little additional cost. You do have some control with the flight.

Each booking site does this differently, but depending on airport, I have been able to build in up to 23h40min layover. In case of Schiphol, I can visit pretty much any one place in Netherlands with a layover this long. Beyond 24hrs, unless there are no connecting flights, the airfare skyrockets, so I don't do it.

It can be as simple as choosing an itinerary with desired layover and cost from the ones offered. Even if you are not offered a desired flight combination, there are other things you can try.

On some site, this is done by cherry picking flights making up a multi-flight segment to see if I can get out something more useful without increasing the cost. There is a risk of airline changing the segment to schedule out a target layover city. So an accommodation, if needed, will be a type that can be cancelled at the last minutes. On some site with some airports, I can manually build in a layover city with some usable duration. In this case, the carrier must take me to the layover city. I had less success with the latter method.

I agree with all the comments about Schiphol being a lovely airport etc., but still I think you could get out and see the city. Within the airport there is a tour company that will take you out. Alternatively, and depending on your budget, you could get a train into the centre, and a taxi back out. Don't bother with Amsterdam shopping, unless you want some bulbs for your garden. But do get a look around the beautiful canal district. it is worth it.

Schiphol is a great airport, probably one of the best to spend 4 hours. It you do decide to get out which seems chancey to me, you could run over to Dam Square or to Museum square from the main train station Centraal.

Um, not sure why you want to shop in Amsterdam. Everything is very pricey - and I would think you could get anyting at home more easily.

Museum square is not exactly "running out": you need to take trams through the busiest part of town (Leidsestraat) to get there.

And Dam square isn't much to look at: if it were me and I had a quick run from CS, I'd go to Brouwersgracht, and have breakfast there, around Haarlemmerstraat, then head back. Quick 10 minute walk from CS and the sweet spot of Amsterdam canal views.