Preheat oven to 375°F. Spray cookie sheets with cooking spray.

In medium bowl, beat butter and cream cheese with electric mixer on medium speed until creamy. Gradually add flour, beating well.

On lightly floured surface, roll dough to 1/8-inch thickness. Cut with 2 1/2-inch round cookie cutter. Place on cookie sheets. Spoon about 1/4 teaspoon jam on each cookie. Fold opposite sides to center, slightly overlapping edges; press down lightly on centers.

Bake 15 minutes at 375 degrees F. Remove from cookie sheets to cooling racks. Sprinkle with powdered sugar.