Cteam together butter and sugar until light and fluffy.

Sift in flour, then add in nuts, vanilla and water. Mix thouroughly, making sure nuts are well mix through.

Scoop by tablespoon to make a small log shape, with slightly pointy ends, then shape in crescent shape on ungreased cookie sheet.

Bake at 300*F(150*C) for about 20 minutes.While still warm dip tops in either powdered sugar or vanilla sugar. Both ways are excellent.