Preparation Steps

• Preheat the oven to 350°F (175°C). Line two baking sheets with parchment paper.
• In a large bowl, combine flour, sugar and salt. Add cold butter and cream cheese; cut in with a pastry cutter or pulse in a food processor until mixture resembles coarse crumbs.
• Add the egg and vanilla, and mix until the dough comes together. Do not overwork. Shape the dough into a disk, wrap in plastic, and chill for 20 minutes if it feels soft.
• Roll out the dough on a lightly floured surface to about 1/8-inch thickness. Cut into 2.5-inch squares or circles.
• Place about 1/2 teaspoon of jam in the center of each square. Fold two opposite corners toward the center to create the traditional kolacky shape, or leave open-faced.
• Beat the remaining egg and brush lightly over the pastries. Bake for 12–15 minutes, until edges are lightly golden.
• Cool on a wire rack. Dust with powdered sugar before serving if desired.