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Preheat oven to 350 degrees F (175 degrees C). Lightly grease 2 baking sheets.
Beat the butter and sugar with an electric mixer in a large bowl until smooth. Stir vanilla extract into creamy mixture. Mix flour and crushed potato chips into the mixture until just incorporated. Fold chopped walnuts into the dough. Roll dough into 1-inch balls; press onto prepared baking sheets and flatten gently.
Bake in preheated oven until golden around the edges, 10 to 13 minutes.