Cream Cheese Walnut Cookies

1 cup sugar
1/2 cup margarine or butter (1 stick) softened
1 3-ounce package of cream cheese
1 teaspoon vanilla extract
1 cup all-purpose flour
1/2 cup walnuts, finely chopped

Preheat oven to 350F. In large bowl, with mixer at low speed, beat sugar with margarine or butter and cream cheese until blended. Increase speed to high, beat until creamy, about 2 minutes, occasionally scraping bowl with rubber spatula. Beat in vanilla. With spoon, stir in flour and walnuts just until blended. With lightly floured hands, roll dough into 1-inch balls. Place balls, 2 inches apart, on ungreased large cookie sheet. With floured fingertips, flatten balls out 1-1/4 inch rounds. Bake cookies 14-18 minutes, until golden. Let cookies remain on cookie sheet on wire rack 2 minutes to cool slightly. Transfer cookies to wire rack to cool completely. Repeat with remaining dough. Store cookies in tightly covered container up to 2-weeks.

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