Beat first 3 ingredients at medium speed with an electric mixer until creamy. Add eggs, milk, and vanilla, beating until smooth. Combine flour and next 3 ingredients; add to cream cheese mixture, beating at low speed until well blended.
Spread batter in a greased and floured 9x13-inch pan. Dollop with preserves and swirl with a knife. Bake at 350° for 25–30 minutes, or until cake begins to leave sides of pan. Cool slightly, then sprinkle with powdered sugar. Cut into squares.
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