In a large mixing bowl, cream 1 cup butter and confectioners sugar until light and fluffy. Add flour and vanilla, mix well. Cover and refridgerate for 1 hour.
Shape 1/4 cupfuls of dough into 1.2 in thick logs. Cut logs into 2 1/2 in pieces, place 1 in apart on ungrease cookie sheet. Bake at 350 for 12 - 14 minutes until lightly brown. Remove to wire racks to cool.
In a heavy saucepan or microwave, melt chocolate and remaining butter, stir until smooth, Dip one end of each cookie into chocolate, then dip into nuts if desired. Place on waxed paper until set.
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