Preheat oven to 350°F. Line baking sheets with parchment paper.

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

On a lightly floured surface, roll dough to about 1/2 cm thickness. Cut with a 2.5-inch cookie cutter and place on prepared baking sheets. Spread about 1 tablespoon of preserves into the center of each cookie.

Bake for 15-18 minutes, until set and lightly golden. Let cool on wire racks.

Sprinkle generously with powdered sugar and store in an airtight container. Replenish powdered sugar before serving if needed.