1Heat oven to 400°F. In large bowl, mix 1/2 cup powdered sugar, the butter and vanilla. Stir in flour, nuts and salt until dough holds together.
2Mold portions of dough around pieces of caramels to form 1-inch balls. On ungreased cookie sheet, place balls about 1 inch apart.
3Bake 10 to 12 minutes or until set but not brown. In small bowl, place additional powdered sugar. Roll cookies in powdered sugar while warm. Cool completely on wire rack, about 30 minutes. Roll in powdered sugar again.