1. Whisk flour and salt together; set aside.
2. Cream together butter and cream cheese until well combined. Add the flour mixture and mix together with a wooden spoon or spatula until combined. Turn dough out onto a lightly floured surface, roll into a ball and wrap tightly in plastic wrap. Refrigerate for at least 6 hours or overnight. You can also keep the dough in the freezer for up to a month before using, just be sure to thaw overnight in the fridge before baking.
3. Preheat oven to 325°. Remove dough from refrigerator and let soften, about 20 – 30 minutes. Whisk together sugar, cinnamon, and nutmeg in a small bowl then set aside.
4. Spread the pecans out on a baking sheet and toast them in the preheated oven, keeping a close eye on them, for 6 – 10 minutes. When slightly darker and colour and fragrant, remove from the oven and let cool.
5. Divide dough into quarters. Working with one piece at a time, roll out into a 12-by-8-inch rectangle on a lightly floured surface.
6. With the long side facing you, spread with 3 tbsp (45 mL) of apricot preserves, making sure to leave a 1/4 inch border. Sprinkle with 1/4 cup (50 mL) toasted pecans, 1/4 cup + 2 tbsp (80 mL) raisins, and 2 tbsp (30 mL) of sugar mixture.
7. Tightly roll the dough into a log, and place seam-side down on a parchment-lined baking sheet. Repeat with each remaining piece of dough.
8. Brush each log with milk or cream, then sprinkle each with 1 tsp (5 mL) of sugar mixture. Bake until golden brown, about 45 minutes. Transfer baked logs to wire racks and let cool for 15 minutes.
9. Once cooled, cut into 1-inch slices. Store in an air-tight container. The rugelach will keep well for up to two days.
Recipe adapted from Martha Stewart.