In mixing bowl, combine flour, sugar, and 1/2 cup nuts. With fork, cut in butter until well distributed with dry ingredients. Sprinkle with vanilla and mix dough with hands until smooth. Shape in 1 inch balls, then roll in remaining nuts. Place about 1 inch apart on greased cookie sheets. Indent centers with lightly floured finger, then fill each with about 1/4 teaspoon preserves or jam (or 1 Hershey Kiss). Bake in preheated oven (325 degrees) 15 to 18 minutes or until golden brown. Remove from rack to cool. Makes about 60.