In a large bowl combine the flour, sugar and salt. Add the butter and break it down with a pastry blender until it resembles coarse crumbs the size of peas. Using a wooden spoon, stir in the cream cheese and sour cream, mixing until the dough comes together and is no longer dry. It should be moist and somewhat smooth. Divide the dough in half, and wrap each half tightly in plastic wrap. Place in the fridge and allow to chill for at least 1 hour.
Preheat oven to 350°F. Line two baking sheets with parchment paper and set aside.
On a lightly floured work surface, roll out one of the dough halves into a large circle, about a quarter of an inch thick. Cut the edges to make a perfect (or somewhat perfect) circle. Brush the dough with half of the olive oil. Sprinkle with half of the cheeses, and half of the Italian seasoning. Using a pizza cutter, cut into 16 even triangles.
Roll each triangle into a croissant shape, starting with the widest edge. Place the rolled pastries on the prepared baking sheets. Once all rolled, place baking sheet in fridge and repeat with the second half of dough.
Brush the rugelach with egg wash. Bake in preheated oven for about 15 to 20 minutes, or until golden brown. Remove from oven and allow to cool for about 5 minutes on baking sheet. Transfer to wire rack and allow to cool completely. Rugelach will keep in the fridge for about 5 days.
Pastries can be frozen right before baking. When ready to bake, brush with egg wash (directly from freezer) and sprinkle with sugar. Bake for 10 minutes longer than directed. Enjoy!