Cream butter and powdered sugar together using a stand mixer.
Mix in vanilla extract, almond extract, and water.
Add flour, almonds, and salt. Mix until well combined.
Shape dough into a flat rectangle, then wrap in plastic wrap. Chill dough in refrigerator for at least 1 hour.
Preheat oven to 250°F (120°C).
Divide dough into 48 equal pieces (see note below), then shape each piece into a crescent shape. Place cookies on baking sheets.
Bake cookies for 50 to 60 minutes, or until cookies are very lightly browned on bottom (tops of cookies should not be browned).
Let cookies cool on baking sheets for 15 to 20 minutes.
Place about 1 cup of powdered sugar in a bowl. Gently roll cookies in sugar, coating all sides of cookie.
Transfer sugar-coated cookies to a baking rack, then let cool completely. Enjoy!
Notes
Almonds - I recommend using slivered almonds (like I did) or sliced almonds for this recipe. You want to finely chop the nuts (using either a food processor or a nut grinder), not completely pulverize them into a flour. I used slightly less than 12 ounces (340 grams) slivered almonds to get 2 cups of ground almonds.Extract - For a milder almond flavor, use just one teaspoon almond extract.Chilling the Dough - Don't forget to chill the dough! The cookies will melt together in the oven if you skip this step.Shaping the Cookies - To speed up the cookie forming process, shape the dough into a flat rectangle before refrigerating. Once the dough is chilled, use a knife to divide the dough into 48 equal pieces. For example, I divided my dough into 4 long rows, then I divided each row into 12 equal pieces (4 x 12 = 48). Once the dough is divided, you can shape it into a crescent shape, or you can shape the dough into logs (much faster).More Tips - Check out the info before this recipe card for helpful tips, step by step photos, recipe variations, and more!