I usually double or triple recipe because these Polish cookies go fast! Mix butter and cream cheese with a fork until smooth. Gradually work in flour. Gather into a ball. Cover and refrigerate until firm.
Preheat oven to 375 degrees. Roll out dough onto floured board or pastry cloth until thin. Cut out 2-inch round circles. Dot center with 1/4 teaspoon of jam. Fold 2 edges together of circle and press tightly to seal. Bake on ungreased cookie sheet until golden (about 10 minutes). Sprinkle with powdered sugar. Tastes best warm. Makes 3 dozen.