In a large bowl, combine butter and cream cheese. Beat with an electric mixer on medium to high speed until fluffy and light in color. Gradually add flour, beating on low speed until combined.

Gather mixture into a ball. Divide dough in half. Cover and chill for 1 to 2 hours or until dough is easy to handle.

Preheat oven to 375 degrees F. Line a large cookie sheet with parchment paper or nonstick foil; set aside. On a lightly floured surface, roll out one of the dough portions to an 1/8-inch thickness. Using a round 3- to 3-1/2-inch cookie cutter, cut out dough. Place about 1 teaspoon of the jam in the center of each round. Moisten edges of dough with water. Fold the dough in half to enclose the jam; press edges together with the tines of a fork to seal.

Place empanaditas 1 inch apart on the prepared cookie sheet. Bake in the preheated oven for 12 to 14 minutes or until golden brown.

In a small bowl, combine sugar and cinnamon. While warm, carefully roll cookies in cinnamon-sugar. Place on a wire rack; let cool. Repeat with the remaining dough portion, the remaining jam, and the remaining cinnamon-sugar. Makes about 36 cookies.

To Store: Place cookies between waxed paper in an airtight container; cover. Store in the refrigerator for up to 3 days or freeze for up to 3 months.