Preheat oven to 325^.
Cream butter and 1/2 cup powdered sugar, Stir in bisquick, nuts and almond extract. Mix in enough water to moisten dough only.
Shape dough by level teaspoonfuls into balls. Place on ungreased baking sheet.
Bake about 8 minutes. Cool slightly before removing from baking sheet. While warm, roll in powdered sugar.
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