Beat room temperature cream cheese, butter, milk, and granulated sugar at medium speed in a stand mixer or with a hand mixer until thoroughly combined. Beat in egg yolk.

Sift in baking powder and flour and stir with a spatula or with the mixer on low until combined. The dough will be stiff. Cover dough with plastic wrap and place in the refrigerator for several hours or overnight.

Preheat oven to 400 degrees.

On a lightly floured surface, roll out dough to ¼ inch thickness. Using a 2 inch cookie cutter, cut cream cheese dough into circles. Place on a baking sheet, with each cookie 1 inch apart.

Using your thumb, make a gentle thumbprint into each unbaked cookie. Spoon a bit of fruit filling on to each round (about 1 tsp.) and place in the oven. Bake for 10-12 minutes, until lightly browned.

Remove from the oven and place cookies on to wire cooling racks to cool completely. Once cool, sprinkle with powdered sugar and enjoy.