Place the butter and sugar in a large bowl and cream with an electric mixer. You can also use a stand mixer.
Add in the water and vanilla extract and mix until combined.
Then add flour and mix thoroughly.
Add the chopped nuts and gently stir to combine.
Chill in the refrigerator for 2 hours
Roll the chilled dough into 1 inch balls and place on an ungreased cookie sheet.
Bake for 20 minutes.
After baking, transfer to a wire rack and cool for 5-10 minutes.
Then roll in confectioner's sugar.
Notes
Dough is very dense after adding flour.Keeping the dough cool is important to the cookies staying nice and round.Place the dough back in the refrigerator between batches.Make them with no nuts if you'd like.Used chopped walnuts, almonds, or any type of nut you'd like to use.Add ⅓ cup of mini chocolate chips if desired.Add ½ cup cocoa powder for a chocolate version.Chop nut in a food processor or with a hand held chopper.Add 1 teaspoon of almond extract in place of 1 teaspoon of vanilla extract if desired.