Preheat oven to 325 degrees.
In a medium bowl, whisk together all of the dry ingredients, except for nuts. Mix until well combined.
In another bowl with stand mixer, or hand held mixer, add the butter. Add your mixed dry ingredients to butter, and cream until well combined.
In the mixing process, add vanilla and water.
Mix everything until all ingredients are well combined, and dough starts to clump together and harden.
Add the walnuts to dough, mix in well until combined.
Roll dough into 1 inch balls and place on a baking sheet lined with parchment paper. I was able to fit all of my dough on one baking sheet. 24 cookies total.
Bake in preheated oven for 15 minutes. Make sure not to over bake the cookies. They will still be very soft when you take them out of the oven, but they will turn into the perfect consistency once they are completely cooled.
Let them cool for about 10 minutes before rolling them in the confectioners sugar. You dont want them to be too warm when rolling them in the sugar. The sugar will melt and turn translucent. But make sure they aren't completely cooled before coating them, or the sugar might not stick at all.
Letting them cool for 10 minutes is perfect. Roll them around in the sugar to coat them evenly.
Enjoy!!