Preparation / Directions:
Preheat oven to 350F. Beat together butter and sugar at medium speed until light and fluffy. Beat in vanilla and water. Beat in flour until smooth.
On a floured surface, using a floured rolling pin, roll dough to a 1/2 inch thickness. Using a 1 inch round cookie cutter, cut out cookies. Gather trimmings, re-roll, and cut out more cookies.
Place cookies, 1 inch apart, on an ungreased baking sheet. Bake until set and golden, 18 to 20 minutes. Transfer cookies to a wire rack to cool. Sprinkle with confectioners sugar.
If using almond extract, sprinkle cookies with finely ground almonds before baking.
If you don't have a 1 inch cookie cutter, you can use a napkin ring instea