Bring oven to 350 degrees F.
Sift flour and baking powder together.
Cream butter and sugar until light and fluffy. Add water, vanilla and egg yolk. Add flour; mix well. Form dough into balls about size of walnut. Roll in slightly beaten egg white, then in nuts. Place on lightly greased baking sheets. Bake 5 minutes.
Remove from oven; press thumbprint in each ball. Return to oven; bake 8 to 10 minutes. Remove to cooling trays; fill centers with bright jam or jelly.
Source: A friend Judy
By Raymonde G. from North Bay Ontario
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