In a large bowl, beat the butter and cream cheese together until smooth.
Gradually add flour and mix until a dough forms.
Divide the dough in half, shape into disks, wrap in plastic wrap, and refrigerate for at least 1 hour.
Preheat oven to 350°F and line baking sheets with parchment paper.
On a floured surface, roll out one disk of dough to 1/8 inch thickness.
Cut into 2-inch squares and place a small spoonful of preserves in the center of each.
Fold opposite corners of the squares toward the center and gently press to seal.
Place on prepared baking sheets and bake for 12–15 minutes, until lightly golden.
Let cool and dust generously with powdered sugar before serving.