In a separate bowl, cream the butter and sugar together until light and fluffy. Add eggs one at a time, adding a tablespoon of the flour mixture with each egg. Beat until well combined. Fold in the remaining flour with the milk.
Place the 2 tablespoons of jam in the bottom of a buttered 750ml pudding basin, then spoon the sponge mixture over top. Cover securely with buttered parchment or foil.
Place the basin in a pan of boiling water, cover and steam for 1 1/2 to 2 hours, or until risen and firm. (Ensure you keep checking the water level in the pan, refilling as needed, so that it doesn't boil dry.)
To serve, turn out onto a warm plate and serve with cream or custard.