Preheat your oven to 350°F. In a medium bowl, beat the softened butter, vanilla extract, and almond extract with an electric mixer for 2-3 minutes until smooth and fluffy.

In a separate bowl, whisk together the all-purpose flour and powdered sugar. Gradually add the dry ingredients to the butter mixture and stir until just blended.

Fold in the finely chopped walnuts. Roll small scoops of dough between your hands to form 1-inch balls, placing them about 2 inches apart on an ungreased baking sheet.

Bake the cookies for about 10-15 minutes, or until the edges start to turn a light golden color. Remove from the oven and let them cool on the baking sheet for 15 minutes. Once cool, roll each cookie in extra powdered sugar until well coated, and serve.