1. Beat butter and sugar in bowl until creamy. Beat in cream cheese, yolks, vanilla and salt, 1 minute. Stir in flour until smooth, using enough flour so dough is firm. Divide into fourths; shape into disks; cover with plastic wrap; refrigerate at least 4 hours or overnight.
2. Position oven rack in top third of oven. Heat oven to 350 degrees F. Grease large baking sheet.Filling:
3. On floured surface, roll 1 piece dough out into 8-inch round. Spread with 2 tablespoons jam. Sprinkle with 1/4 cup cherries, 2 tablespoons chips. Cut dough in 8 wedges. Starting at outside edge, roll up each triangle, enclosing filling. Transfer to prepared sheet, spacing inch apart. Make 24 more, using remaining dough, filling.Glaze:
4. Brush each rugelah very lightly with milk. Sprinkle with sugar.
5. Bake in top third of 350 degrees F oven until lightly browned, 20 to 25 minutes. Cool on rack.