BEAT butter and cream cheese together in medium bowl with electric mixer. Add 2 cups flour, one cup at a time, until mixture forms a ball. Flatten dough into disk. Wrap with plastic wrap. Chill 1 hour.
HEAT oven to 350 degrees F. Combine cinnamon and sugar in small bowl. Dust work surface with remaining 1/2 cup flour. Divide dough into 10 equal pieces. Roll each piece into a 9-inch circle.
SPREAD each circle with 2 tablespoons fruit spread, sprinkle with cinnamon sugar mixture, 2 tablespoons raisins and 2 tablespoons walnuts. Roll filled circle into a log shape, seam side down and tuck ends under. Place strudels 2 inches apart on cookie sheet.
BAKE 35 to 40 minutes or until golden brown. Cool. Cut each log into 8 pieces, about 1 inch wide. Sprinkle with powdered sugar. Place in small paper baking cups to serve, if desired.
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