Preheat oven to 350 degrees
Beat butter at medium speed with electri mixer until fluffy. Add sugar and continue mixing. Add egg and next 3 ingredients beating until blended. Cover and chill for 1 hour.
Combine nuts and sugar in a shallow bowl.
Shape dough into 1 inch balls and roll in nut mixture. Place on ungreased cookie sheet about 2 inches apart. Flatten cookie with palm of hand or glass.
Bake for 10 to 12 minutes until golden brown.