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- BEAT cream cheese and butter in medium bowl with mixer on high speed until blended. Gradually blend in flour until smooth dough forms.
- DIVIDE dough in half. Shape into two disks. Wrap separately in plastic wrap. Chill 1 hour or until firm enough to handle.
- HEAT oven to 350°F. Roll one disk of dough to 1/8-inch thickness on floured surface. Cut into 2 1/2-inch squares.
- SPOON 1/2 teaspoon preserves onto center of each square. Gently lift two opposite corners of dough square and overlap in center, covering preserves. Press gently to seal. Repeat with remaining dough and preserves.
- BAKE 10 to 12 minutes or until lightly browned. Cool 3 minutes. Remove to wire rack to cool completely. Dust with powdered sugar before serving.