Preheat the oven to 350º F.
In a large bowl, add dry ingredients and whisk to blend.
In a small bowl, add cream cheese, butter, water, and vanilla. Mix well with an electric mixer. (Do not add extra tablespoons of water yet.)
Pour the wet ingredients into the dry. Mix well. Add extra tablespoons of water one at a time until you get a good dough consistency like shown in my picture above. Refrigerate the dough for 45 minutes.
Divide the dough in half. Lay out a piece of wax paper. Put the one of the dough balls in the middle of the wax paper and shape into a ball. Place another piece of wax paper on top.
Use a rolling pin to roll the dough, keeping it in a circle shape until it is ¼ inch thick.
Spread on your mix-in. I like to use chopped nuts, cinnamon, and sugar. You can also use chocolate chips.
Spread the mix-in to cover the dough evenly.
Use a pizza cutting wheel to slice it into thin wedges as shown above in the picture.
Gently pull a wedge out and roll as shown. Pinch the dough to fix any cracks that happen.
Place rolled rugelach onto a parchment paper lined baking sheet. Repeat with the second dough ball.
Bake for 10 minutes until your cookies are golden like shown above.