- Preheat oven to 350°F.
- Cream together butter and cream cheese. Add flour and mix thoroughly. Chill for one hour.
- On a floured surface roll out dough and cut into 3-inch circles about 3/8-inch thick. Place scant teaspoon of preserves in center of cookie, moisten edges with water. Fold over into a crescent shape and seal edges.
- Bake on parchment paper for 20 minutes.
- While cookies are cooling, mix together the powdered sugar and milk. Drizzle over cooled cookies. Store in air-tight container.