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Preheat oven to 375 degrees.
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Beat 1/2 cup butter until light in color. Gradually add 1 1/4 cup of sugar and beat until light and fluffy.
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Add eggs, one at a time. Beat well after each.
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In medium bowl, combine 2 cups of flour, baking powder and salt. Mix well.
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Combine milk and water.
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At low speed, gradually add flour mixture alternately with milk/water mixture. Begin and end with dry ingredients. Mix only until blended. Do not overbeat.
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Turn off mixer. Add cubed cream cheese and blueberries. Using a spatula, mix to incorporate. Spread batter into 9" square pan.
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In small bowl, combine crumb topping ingredients. Mix together with a fork until crumbs look like small peas. Spread evenly over batter..
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Bake at 375 degrees for 50-55 minutes.