Step 1

Preheat oven to 350° F.Grease 13 x 9-inch baking pan.

Step 2

Beat 1 cup butter and 1 cup granulated sugar in large mixer bowl until fluffy.Beat in egg.Beat in 2 cups flour. Stir in 1 cup morsels. Spread mixture in prepared pan.Spread jam evenly over mixture in panleaving 1/2-inch border.

Step 3

Combine remaining 1 cup flour and remaining 1/4 cup granulated sugar in medium bowl.Cut in 1/4 cup butter with pastry blender or two knives until mixture is crumbly.Stir in remaining 1 cup morsels.Sprinkle streusel evenly over preserves.

Step 4

Bake for 40 to 45 minutes or until top is golden brown.Cool completely in pan on wire rack.Cut into bars.

Step 5

Combine powdered sugarmilk and vanilla extract in small bowl.Drizzle over bars; let stand until set.