Beat softened butter and 1/2 cup powdered sugar with electric mixer until blended. Start incorporating flour and next 4 ingredients maintaining a low speed until all ingredients form a homogeneous dough.
Cover dough and chill for an hour.
Preheat oven to 275. Prepare 2 baking sheets lines with parchment paper. Shape dough into little 1 inch balls, placing an inch apart, and flattening slightly.
Bake for 35-40 minutes or until edges are lightly browned, rotating pans after 15 minutes.
Roll hot cookies in remaining 2 cups of powdered sugar and then allow the cookies to cool for 20 minutes. If needed, re-roll cookies in any remaining powdered sugar.