Combine 1/2 cup butter, 1/3 cup powdered sugar and preserves in bowl. Beat at medium speed, scraping bowl often, until creamy. Cover; refrigerate until serving time.
Cut bread slices with a 2 1/2- to 3-inch heart-shaped cookie cutter. Combine half & half, eggs and vanilla in 9-inch pie plate; mix well. Dip 4 bread shapes into half & half mixture, turning to coat both sides; let stand 1-2 minutes.
Melt 2 tablespoons butter in 10-inch nonstick skillet or griddle until sizzling; add coated bread. Cook over medium heat, turning once, 3-4 minutes or until golden brown. Remove from skillet; keep warm. Carefully clean skillet with paper towel, if necessary.
Repeat dipping remaining bread shapes into egg mixture. Melt remaining butter in skillet and cook bread as directed.
Sprinkle hot French toast with powdered sugar; serve with Strawberry Butter.