Mix the chilled cream cheese and powdered sugar until smooth then scoop into 18 small balls.
Freeze the cream cheese balls for fifteen minutes to ensure they stay firm during stuffing.
Beat the softened butter and granulated sugar together until the mixture is light and fluffy.
Whisk in the egg and vanilla extract until the batter is completely smooth and uniform.
Sift in the flour, baking powder, and salt, then stir gently until a soft dough forms.
Gently swirl the jam into the dough with a spoon using only two or three light strokes.
Wrap a tablespoon of dough around a frozen cream cheese ball and pinch the seams shut.
Bake at 350°F for 12 minutes until the edges are golden and the centers are set.