Potato Pierogi with Sour Cream-Chive Sauce

Combine flour and salt in large bowl. Cube half the cream cheese; cut into flour mixture with pastry blender or 2 knives until mixture resembles coarse crumbs. Add egg and warm water; mix until mixture forms ball. Place on lightly floured surface. Knead 5 min. or until dough is smooth and elastic; wrap in plastic wrap.

Mix remaining cream cheese with potatoes, onions and pepper until blended; set aside. Roll out dough on lightly floured surface to 1/8-inch thickness; cut into 48 (3-1/2-inch) rounds, rerolling scraps as necessary. Spoon 1 Tbsp. potato mixture onto centre of each round. Brush water halfway around edge of each dough round; fold in half to enclose filling. Seal edges with fork.

Bring large saucepan of water to boil. Add pierogi, 12 at a time; cook 3 to 4 min. or until they float to the surface. Remove with slotted spoon; drain.

Melt 1 Tbsp. butter in large skillet. Add 1/4 of the shallots and 12 pierogi; cook and stir 4 min. or until pierogi are golden brown. Repeat, in batches, with remaining butter, shallots and pierogi. Mix sour cream and chives until blended. Serve with the pierogi.