Filling: Combine apricots and water in heavy saucepan and cook covered over medium heat for 10 minutes or until apricots are soft. Continue to cook UNCOVERED 5 to 10 minutes or until most of the water has been absorbed.
Mash apricots, stir in sugar and let filling cool. Set aside.
Dough: Cream butter and cream cheese until fluffy; add sugar and beat well. Add flour and mix well. Shape dough into ball, wrap in cling wrap and chill 1 hour.
Turn dough onto well-floured surface, working with only half the dough. Roll out to 5mm thickness and cut into 5cm squares. Spoon 1/2 teaspoon of apricot filling into the centre of the square.
Bring four corners to centre, pinching to seal.
Bake at 200 degrees C for about 15 minutes. You may baste the kolache with melted butter halfway through baking period, if desired.
Altered ingredient amounts.
Great recipe! I added 4 tbsp extra flour to dough, due to previous review that it was too sticky to work with and my dough came out fine. I divided my dough into 3 parts and rolled out each part, spread filling and cut into triangles like a pizza. Each wedge was then rolled up like croissants. To the apricot filling I added and extra tbsp. sugar. My kids and family loved them. - 21 Jul 2008
These turned out well. I chilled my dough a little longer than an hour because it still seemed a little too soft when I checked it. I will definately try these with other fillings. - 21 Jul 2008
The dough was very soft and despite using a well-floured surface to roll it on, I couldn't fold up the corners. I put the smeared little lumps on parchment to prevent scorching, and they did taste good. - 21 Jul 2008