Preheat oven to 425°F.
In medium bowl, blend together butter or margarine and cream cheese. Add Krusteaz Scone Mix and milk. Mix together. Knead dough 5-6 times on a generously floured board. Roll dough to 15x8-inch rectangle. Transfer dough to lightly greased baking sheet.
On each 15-inch side, cut dough into strips 1-inch apart, 2-inches deep (leaving 4-inches in center). Spread preserves over center of dough. Lift dough strips to cover preserves. Bake 10-12 minutes.