Preheat oven to 375 degrees.
In mixing bowl combine butter and cream cheese by using an electric mixer set on medium speed. Beat until light and fluffy.
Add flour to butter/cream cheese mixture using a sturdy rubber spatula.
Once the flour is incorporated, form dough into ball.
You can refrigerate the dough for one hour up to overnight, but you do not have to do this if your kitchen is not too warm.
Lightly flour a surface and roll dough out to 1/8 inch thickness. Lightly dust your rolling pin so that the pastry does not stick.
Cut pastry into 2 inch rounds using a cookie cutter dipped in flour. Continue to do this until all dough is used.
Place cookies on parchment paper lined baking sheet.
Spoon 1/4 teaspoon of jam into center of each cookie. Carefully fold opposite edges together and seal by pinching dough.
Bake for approximately 12 minutes. Keep a close eye on cookies so they only getting slightly golden on the edges.
Using a sieve, sprinkle cookies with powdered sugar and let cool completely before serving.