Assemble all the ingredients.
In a mixing bowl, combine cream cheese and butter until creamy.
Gradually add flour to the mixture, blending until just incorporated.
Shape the dough into a ball, cover the bowl, and refrigerate for a minimum of 3 hours or overnight.
Preheat the oven to 350°F (180°C).
Roll out the dough on a floured surface to a thickness of 1/8 inch.
Cut the dough into 2 1/2 inch squares and place 1/2 teaspoon of jam in the center of each.
Fold opposite corners of each square together and pinch them to seal. Place the pastries on an ungreased baking sheet.
Bake in the preheated oven until golden brown, about 10-12 minutes.
Let the kolacky cool on wire racks and dust with confectioners' sugar before serving.
