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Preheat oven to 275 degrees.
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In a mixing bowl, cream together the butter and sugar.
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Sift flour 3 times and blend into butter mixture.
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Add nuts and vanilla.
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Roll into balls about 1 inch in diameter.
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Place on baking sheet and bake for 1 hour.
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While still warm, roll in powdered sugar.
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Roll again in powdered sugar when cooled.
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Store in tightly covered container.