Preheat your oven to 325F. Grease two cookie sheets.
Cream the butter, the 1/4 cup sugar and the vanilla in a medium bowl until fluffy. Add the nuts gradually and mix well. Stir in the flour. Roll the dough between your palms into balls or crescents.
Arrange on the cookie sheets and bake one sheet at a time about 15 minutes or until cookies are faintly colored. Cool on a rack. Roll in additional powdered sugar until coated all over.
Makes about 4 dozen cookies.