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1 - 8oz. package cream cheese, softened
1/2 c. butter
2/3 c. sugar
2 eggs
1 tsp. vanilla
2-1/2 c. flour
1/2 tsp. baking powder
1/3 c. walnuts (I used pecans) finely chopped
3/4 c. preserves (I used strawberry)
1 tsp. powdered sugar
Preheat oven to 350 F. Beat cream cheese, butter and sugar in large bowl until well blended. Separate 1 of the eggs; set egg white aside for later use. Add yolk, second (whole) egg and vanilla to cream cheese mixture; mix well. Gradually add combined flour and baking powder, beating until well blended.
Divide dough into 4 equal pieces. Roll each piece into 12x1 inch log; place 2 inches apart, on large ungreased baking sheet. Use fingers to make depression down length of each log. Beat reserved egg white with fork; brush over dough. Sprinkle with walnuts. Fill depressions with preserves, using about 3 T. preserves in each log.
Bake 25-27 minutes or until edges are slightly browned. Let cool. Sprinkle with powdered sugar. Cut each log into 12 equal pieces.