Combine 1/4 cup water, 1 tsp sugar, and 1 tsp vanilla extract in a saucepan.

Warm over medium heat until sugar dissolves.

Add apricot halves and simmer for about 5 minutes until tender and syrup is absorbed.

Cool the apricots.

Whisk together buttermilk, egg yolk, and melted butter.

In a separate bowl, combine flour, baking powder, baking soda, and salt.

Whip the egg white until stiff peaks form.

Gently stir dry ingredients into wet ingredients until just combined.

Fold in the whipped egg white.

Combine cream cheese with remaining 2 tsp of sugar.

Coat each apricot with cream cheese using your fingers.

Reserve the cream cheese coated apricots on a plate.

Heat an aebleskiver pan and butter well.

Fill each cavity about 1/2 full with batter.

Place a cream cheese coated apricot into the middle of each dollop of batter.

Top with a little more batter to cover and fill the well.

Cook for about a minute.

With a skewer, tip the dumpling to one side to cook the other half.

Rotate the dumplings until golden brown on all sides and cooked through.

Transfer to a warmed plate and dust with powdered sugar.

Serve immediately.