In large mixing bowl beat the butter and cream cheese with an electric mixer on medium to high speed 30 seconds. Add sugar and beat until combined. Add egg yolk and vanilla; beat until combined. Beat in flour. Wrap and chill dough 1 hour or until easy to handle.Advertisement
Line a cookie sheet with parchment paper; set aside. Shape dough into 1-inch balls. Roll balls in coconut. Arrange 1-1/2 inches apart on prepared cookie sheet. Use thumb to make indentation in each cookie.
Bake in a 350 degree F. oven about 14 minutes or until edges are light golden. Cool on cookie sheets 1 minute. Use thumb to re-imprint cookies. Spoon about 1/4 teaspoon jam into center of each. Remove and cool completely on wire racks Makes about 48 cookies.