In a large bowl, combine the first 4 ingredients in a mixer at a low-speed setting for 1 minute; blend well.
Lightly spoon flour into a measuring cup; level off. Gradually add flour at low speed until just combined. Stir in nuts.
Roll dough into 1-inch balls; place about 1-inch apart on an ungreased cookie sheet. Bake at 350o for 8 to 10 minutes until firm to the touch but not brown (do not overbake).
While warm, roll in powdered sugar. Let cool and re-roll in powdered sugar before serving.