Cream butter and cream cheese at medium speed with an electric mixer; add flour, beating well. Divide dough into 4 equal portions. Wrap each in plastic wrap and chill.

Work with 1 portion of dough at a time; keep remaining dough chilled. Sift powdered sugar lightly over work surface. Roll dough into a 12x8 inch rectangle.

Combine raisins, preserves, walnuts, brown sugar, and coconut; spread one fourth of raisin mixture over dough. Roll up jellyroll fashion, starting at short side. Pinch seams and ends together.

Place roll, seam side down, on an ungreased baking sheet. repeat procedure with remaining dough and filling mixture.

Bake at 325F for 55 minutes. Combine 3/4 cup powdered sugar and water, stir until blended. Drizzle powdered sugar glaze over warm srtudels. Serve warm or at room temperature.