Use an electric mixer to combine the butter with the sugar until fluffy. Stir in the flour, a little at a time, blending well to make a stiff dough. The mixture will be very crumbly for a few minutes until you finally see it coming together in clumps. Remove it to a lightly floured surface and knead the dough together until it comes together nicely in a ball. Wrap in waxed paper and chill until the dough is quite firm.
Preheat the oven to 350 degrees F.
Roll out half of the chilled dough ¼ inch thick on a lightly floured cloth or mat. Cut out 48 rounds with a 2 inch cutter; cut a small round from the center of half of the cookies. DO NOT roll the dough too thin or the cookies will be too thin and crispy for working with. Thicker is better. Repeat with the 2nd half of the dough.
Place cutouts ½ inch apart on a cookie sheet. Re-roll trimmings and cut out.
Bake about 18 minutes, or until firm and lightly golden. Remove from cookie sheets and cool completely.
Spread jelly on each large round; top with cookie ring; sprinkle lightly with powdered sugar.
Notes
If you're not able to locate red currant jelly, you can sub raspberry or strawberry jam. But the red currant jelly is REALLY GOOD, so I recommend looking for it.