Recipe combined from www.joyofbaking.com & www.allrecipes.com
1 cup butter
1/4 cup powdered sugar
1 teaspoon vanilla extract
1 teaspoon almond extract
2 teaspoons water
2 cups all-purpose flour
1 cup chopped nuts
Topping:
1/2 cup confectioners sugar
In a medium bowl, cream the butter and sugar. Stir in extracts and water. Add the flour and nuts, mix until blended. Cover and chill for 2 hours.
Preheat oven to 350 degrees.
Shape dough into balls or crescents. Place on parchment paper lined cookie sheet and bake for 12 to 15 minutes. Remove from pan to cool on wire racks.
When cookies are cool, roll in confectioners sugar. Store at room temperature in an airtight container.