Directions

1. Combine margarine and cream cheese in large bowl; beat with mixer at medium speed until smooth and creamy. Beat in vanilla.
2. Combine flour and salt in small bowl; gradually add to margarine mixture, beating until mixture forms soft dough.
3. Divide dough in half; wrap each half in plastic wrap. Refrigerate until firm.
4. Preheat oven to 375 degrees F (190 degrees C).
5. Roll out half of dough on lightly floured pastry cloth or board to 1/8 inch thickness. Cut with top of glass or biscuit cutter into 3 inch rounds.
6. Spoon 1/2 teaspoon fruit preserves/jam onto center of each dough circle. Beat egg with water in small bowl; lightly brush onto edges of dough circles. Bring three edges of dough up over fruit; pinch edges together to seal. Place on ungreased cookie sheets; brush with egg mixture. Repeat with remaining dough and fruit.
7. Bake 12 minutes or until golden brown. Let stand on cookie sheets 1 minute. Transfer kolackys to wire rack; cool completely. Store in tightly covered container.