Cream butter until light, gradually add sugar and beat until light and fluffy. Beat in vanilla.
Gradually blend in flour and nuts. Chill dough thoroughly so it will handle easily.
Form teaspoonfuls of dough into crescents; place 3/4" apart on un-greased baking sheet. Bake in moderate oven (350F) 12 to 15 minutes, or until lightly browned. Cool slightly; remove from baking sheet and, while warm, roll in confectioners sugar. Cool on racks. Makes about 7.5 dozen.
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