For a full nut flavor, toast walnuts before chopping and adding to the cookie dough. You can toast them on the stovetop over medium heat for 2-5 minutes, or in a 350 degree oven for 7-10 minutes. Check them often! They can quickly go from perfectly toasted to burned, so watch closely.
Beat butter and sugar together in large mixing bowl. You can use a stand mixer or hand mixer.
Add flour and water alternately to the mixture.
When combined, add the vanilla extract and toasted nuts.
Shape the dough into balls, place on a cookie baking sheet covered with parchment paper.
Bake about 15 minutes at 350 degrees.
Sift some powdered sugar (also known as confectioners' sugar) in a pie dish or on a cutting board.
Remove from cookie sheets, and place the baked cookies in the powdered sugar directly out of the oven, rolling to coat completely.
Cool on a wire rack. Store in an airtight container.
Notes
*If you can use pure vanilla, the flavoring will be even better! **Substitute chopped pecans instead of the walnuts if you prefer.