1Mix together 1/2 cup powdered sugar and 2 T cocoa and set aside.
Preheat oven to 400 degrees. Beat butter at medium speed with an electric mixer until creamy. Add flour and next 3 ingredients, beating until blended. Stir in nuts and chocolate chips. (Dough will be stiff.) Shape into 1-inch balls, and place on ungreased baking sheets.
2Bake at 400 degrees for 10 minutes. Remove cookies to wire racks, and cool slightly. Roll warm cookies in the powdered sugar-cocoa mixture you set aside earlier, and cool completely on wire racks.