Toast Walnuts: Spread nuts on a baking sheet. Place into a preheated 350°F oven and toast for 6-8 minutes or just until fragrant. Cool.
In a medium size mixing bowl, use a whisk to sift together flour, sugar and salt. Set aside.
Using an electric hand mixer in a medium size mixing bowl, cream together butter and cream cheese with vanilla and almond extracts. Beat until light and fluffy. On low speed, beat in sifted flour mixture just until fully blended.
Divide dough into fourths, form into discs about 3/4 inch thick and wrap in plastic wrap. Chill for at least 2 hours or overnight.
Bake: Preheat oven to 375ºF. Spray a large baking sheet lightly with no-stick cooking spray or line with parchment paper.
Make the Filling: In a small mixing bowl, mix together apricot preserves, coconut and walnuts; set aside.
Assemble: On a lightly floured surface, roll one fourth of dough at a time into an 8 x 10-inch rectangle about 1/8 inch thick. Use a sharp knife or a pizza cutter to cut rolled dough into 2-inch squares.
Spread each square with 1 teaspoon apricot mixture, leaving edges of dough uncovered. Moisten one corner of dough with water. Beginning at opposite corner, bring together slightly overlapping; press lightly to seal. (If you have an issue getting the edges to stick, use a beaten egg with a little water to moisten the corners.) Place onto pan at least 2 inches apart.
Bake for 12-15 minutes or just until edges begin to lightly brown. Cool on the pan for 5 minutes, then carefully remove to a wire rack to cool completely.
Dust cooled cookies with powdered sugar and serve.
Store leftover cookies chilled or at room temperature in an airtight container for up to 5 days.