Step 1

Preheat oven to 350 degrees F.

Step 2

In a large bowl, mix together the cream cheese, butter, shortening, and sugar until fully combined and creamy.

Step 3

Stir in almond and vanilla extracts and then the flour.

Step 4

Roll the dough into 1 inch balls and arrange them on an ungreased cookie sheet.

Step 5

Bake 7-9 minutes or until the edges are just starting to brown.

Step 6

As cookies bake, mix powdered sugar and walnuts in a small bowl.

Step 7

Remove cookies from oven and let cool 1 minute before rolling them in the powdered sugar mixture.

Step 8

Store in the fridge in an airtight container or bag.