"Hungarian Treats are in a cookbook from the church we grew up in...The book was hand typed by my mother [in 1970] and the recipes all originated from church members. They’ve been a part of our Christmas cookie repertoire for years--they're a little labor intensive, but it's fun if family members are working together, as you can chat as you work. The result is pretty, and of course, delicious." - Regina Beidler, Organic Valley Farmer-Owner
Let cream cheese and butter stand at room temperature at least 30 minutes to soften. Using a stand mixer with the paddle or dough hook attachment (or mix by hand with a sturdy wooden spoon), combine the butter, cream cheese and 1/4 cup of the powdered sugar on medium-low speed until well blended. Beat in flour 1 cup at a time.
Once the flour has been evenly incorporated, remove the dough from the mixer, form into three balls and flatten each ball into a disc. Wrap in plastic wrap or waxed paper and let rest in refrigerator 15 minutes. (At this point dough may be chilled up to 24 hours. Let stand at room temperature 30 to 40 minutes to soften before rolling.)
Sprinkle 3 tablespoons powdered sugar onto a pastry cloth, pastry board or smooth countertop. Roll out 1 disc of dough at a time to 1/8-inch thickness. Cut the dough into 2×2 inch squares. Place 1/2 teaspoon preserves in the center of 1 square. Place a second square evenly over the first square. Press down all edges of the squares with tines of a fork to seal in preserves. Repeat this process with the remaining balls of dough. (Any remaining scraps of dough may be combined and rolled out.)
Place the dough squares on baking sheets lined with parchment paper. Bake in a preheated 350°F oven 12 minutes or until cookies begin to brown. Slide the cookies (still on the parchment paper) onto a wire cooling rack. Place additional powdered sugar in a strainer and shake generously over the warm cookies. Cool completely.
Cookies may be stored in an airtight container at room temperature up to 2 days or frozen up to 3 months.