Beat butter and cream cheese in mixer bowl until light and fluffy. Add flour gradually, beating well after each addition.
Roll dough to 1/8 inch thickness on lightly floured surface. Cut into 2-inch circles. Spoon 1/4 teaspoon jam into center of each circle. Fold opposite edges together, slightly overlapping edges.
Place 2 inches apart on greased cookie sheet. Bake at 375 degrees F (190 degrees C) for 15 minutes. Remove to wire rack to cool. Sprinkle with confectioners' sugar.
