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1/2 cup butter, softened
3 ounces cream cheese, softened
1 teaspoon vanilla extract
1 cup all-purpose flour
1/8 teaspoon salt
1/4 cup any flavor fruit jam
1 egg
1 teaspoon cold water


Combine margarine and cream cheese in large bowl; beat with mixer at medium speed until smooth and creamy. Beat in vanilla. Combine flour and salt in small bowl; gradually add to margarine mixture, beating until mixture forms soft dough. Divide dough in half; wrap each half in plastic wrap. Refrigerate until firm. Preheat oven to 375 degrees F (190 degrees C). Roll out half of dough on lightly floured pastry cloth or board to 1/8 inch thickness. Cut with top of glass or biscuit cutter into 3 inch rounds. Spoon 1/2 teaspoon fruit preserves/jam onto center of each dough circle. Beat egg with water in small bowl; lightly brush onto edges of dough circles. Bring three edges of dough up over fruit; pinch edges together to seal. Place on ungreased cookie sheets; brush with egg mixture. Repeat with remaining dough and fruit. Bake 12 minutes or until golden brown. Let stand on cookie sheets 1 minute. Transfer kolackys to wire rack; cool completely. Store in tightly covered container.

Source: allrecipes.com