Beat first 3 ingredients at medium speed with an electric mixer until creamy. Add eggs, milk, and vanilla, beating until smooth.
Combine flour and next 3 ingredients; add to cream cheese mixture, beating at low speed until well blended. Spread batter into a greased and floured 13- x 9-inch pan. Dollop with preserves, and swirl with a knife.
Bake at 350° for 30 minutes or until cake begins to leave sides of pan. Cool slightly, and sprinkle with powdered sugar. Cut into squares.
This recipe is easy and delicious. It turns out very moist. I only had cherry preserves so I used them. The coffee cake was a hit and gone in minutes! I recommend this for a special brunch or just a nice breakfast treat at home. I will definately make this again and share this recipe with others.