Mix cream cheese and butter until smooth. Add flour slowly until well blended. Shape into a ball and chill overnight or for several hours.
Preheat oven to 180 degrees C. Roll dough out 3mm thick on a floured surface. Cut into 6cm squares and place 1/2 tsp (approx) of jam in the centre of each square. Overlap opposite corners and pinch together. Place on ungreased baking trays.
Bake for 10 to 12 minutes in the preheated oven. Cool. Sprinkle lightly with icing sugar.