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1
Using a vegetable peeler, peel grapefruit making wide strips. With a sharp knife, carefully remove white pith from peel. Cut peel into 1/4-in. strips. (Save fruit for another use.)
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2
Place grapefruit strips in a small saucepan; add water to cover. Bring to a boil. Cover and cook 10 minutes; drain.
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3
In same saucepan, combine 2/3 cup water, sugar and grapefruit strips; bring to a boil. Reduce heat; simmer, uncovered, until peels are transparent, 12-15 minutes, stirring occasionally.
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4
Using a slotted spoon, transfer strips to a wire rack placed over a baking pan. Let stand overnight. Meanwhile, in a large bowl, whisk flour and sugar. Cut in butter and cream cheese until mixture is crumbly. Turn onto a lightly floured surface; knead gently 8-10 times.
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5
Roll dough into a 12x10-in. rectangle or oval. Starting with a shorter side, fold dough into thirds, forming a 4x10-in. rectangle. Place folded dough with longer side facing you; repeat rolling and folding twice, always ending with a 4x10-in. rectangle. (If at any point the butter softens, chill after folding.) Cover folded dough; refrigerate overnight.
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6
Preheat oven to 400u00b0. On a lightly floured surface, roll dough into a 12-in. square. Cut into 2-in. squares. Place 1 in. apart on ungreased
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7
. Press a deep indentation in center of each with the end of a wooden spoon handle. Fill each with a heaping 1/4 teaspoon preserves.
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8
Bake until golden brown, 12-14 minutes. Top with candied peel; remove from pans to wire racks to cool.
