Preheat the oven to 350 F. Place the jalapeño in a saucepan and add enough water to cover. Bring to boil. Reduce heat and simmer until the jalapeño softens, 10 to 12 minutes. Remove jalapeño from pan.
Remove the stem and seeds and finely chop. In small bowl, combine apricot preserves and chopped jalapeño. Set aside.
In a second saucepan, combine 1/2 cup sugar and 1/2 cup water. Bring to boil, stirring until the sugar has dissolved. Remove from heat and allow to cool.
In a stand mixer, combine flour, baking powder and salt. Cut in shortening and butter and combine. Add egg, milk, and the remaining 1 teaspoon sugar. Continue to combine until you have a soft dough. Wrap dough in plastic wrap and refrigerate 2 hours.
On a floured surface, roll out dough with rolling pin. Cut dough for each empanada with 3-inch round cookie cutter.
Place 1 teaspoon cream cheese and a small dollop apricot and jalapeño filling on one half of each dough circle. Wet bottom edge of circles with water. Fold top half of dough over to cover filling and seal with a fork by pressing down along edges. Repeat with remaining dough and filling.
Brush each empanada with sugar and water mixture and puncture twice with fork tines (to allow internal steam to release while baking). Spray a large cookie sheet with cooking spray. Place empanadas on cookie sheet and bake 15 to 20 minutes on middle rack in oven. If after 10 minutes bottoms of empanadas start to brown, move cookie sheet to top rack and continue to bake for remaining 5 to 10 minutes, until golden brown. Remove empanadas from oven and serve warm or at room temperature.