Preheat oven to 350 degrees. Line baking sheets with parchment paper. Set aside.

In a large mixing bowl combine butter, cream cheese, and granulated sugar. Beat until creamy, about 2-3 minutes. Add baking powder and flour. Beat until a soft dough forms.

Drop dough onto a lightly floured surface and roll to about 1/2 cm (about 0.2 inches) thickness. Cut with a 2.5-inch cookie cutter and place on baking sheet. Spread about 1 tablespoon preserves into the center of each cookie.

Bake for 15-18 minutes, until set (before it begins to brown). Cool completely on wire rack.

When cool, sprinkle generously with powdered sugar. Store in airtight container in refrigerator for one week. Add powdered sugar before serving if needed.