1. Beat butter and cream cheese at medium speed with an electric mixer until creamy. Add fl our to butter mixture, beating well.
2. Roll dough to 1/8-inch thickness on a lightly floured surface; cut with a 2 1/2-inch round cookie cutter. Place on lightly greased baking sheets. Spoon 1/4 tsp. jam on each cookie. Fold opposite sides to center, slightly overlapping edges; press down lightly on centers.
3. Bake at 375° for 15 minutes. Remove to wire racks to cool.