Preheat oven to 350 degrees and line a baking sheet with parchment paper.
Mix together flour, ½ cup powdered sugar, butter, ground walnuts (or crushed candy canes) and salt.
Stir in vanilla and almond extracts.
Batter will be crumbly and may seem a little dry, but it should stick together when pinched. If too dry, add a couple splashes of water.
Using about 1 ½ tablespoons of dough, roll into balls and press down lightly on baking sheet.
Bake for 15 - 17 minutes or until set, not brown.
Let cool completely before rolling in remaining 1 cup of powdered sugar.
Store at room temperature.