Step 1: Preheat oven to 375 F.
Step 2: In a large bowl with a mixer, cream 1 cup softened butter and 8 ounces softened cream cheese together until well-blended.
Step 3: Add 2 cups flour and 1/2 teaspoon baking powder and mix well. Refrigerate dough for 3 hours.
Step 4: Roll dough out on a lightly floured surface to 1/8-inch thickness. Cut dough in 3-inch circles and fill each with 1 teaspoon of apricot preserves. Fold circles in half and press with fork to seal.
Step 5: Place on ungreased cookie sheet and bake in oven for 7 to 10 minutes or until golden brown. Remove from pan and quickly roll in powdered sugar.
Step 6: When cooled completely, store cookies in an airtight container and refrigerate until ready to eat.
