Combine the flour and salt in a mixing bowl. Cut in the cold butter and cream cheese until the mixture resembles coarse crumbs.

Blend in the sour cream and water, mixing just until a dough forms. Divide the dough into three equal disks, wrap them in plastic wrap, and refrigerate for 1 hour.

Preheat your oven to 350°F (175°C) and line a baking sheet with parchment paper.

Roll one disk into a 10-inch circle. Spread a thin layer of jam, then sprinkle with mini chocolate chips and cinnamon sugar.

Slice the rolled-out dough into 12 wedges and roll each wedge towards the tip to form crescent shapes.

Place the rolled rugelach on the prepared baking sheet and chill them in the refrigerator for 15 minutes.

Brush with an egg wash if desired, then sprinkle with extra cinnamon sugar.

Bake for 20–25 minutes until golden brown and flaky. Allow to cool slightly before serving.