Preheat the oven to 325°F. Line a baking sheet with parchment paper or a silicone baking mat.
In a large mixing bowl, cream together the softened butter and 1/2 cup of powdered sugar until light and fluffy.
Mix in the vanilla bean paste until well incorporated. The tiny vanilla bean specks will add a wonderful flavor and visual appeal.
Gradually add the flour, ground nutmeg, and salt to the butter mixture. Mix until the dough is just combined.
Gently fold in the finely chopped nuts until evenly distributed throughout the dough.
Take about 1 tablespoon of dough and roll it into a ball. Place the cookie balls on the prepared baking sheet, spacing them about 1 inch apart.
Bake for 15-16 minutes, or until the cookies are set but not browned. They should still be pale in color and can be slightly spongy when touched right out of the oven.
Remove the cookies from the oven and let them cool on the baking sheet for about 5 minutes.
While the cookies are still warm, roll them in the remaining 1 cup of powdered sugar. This will create the "snowball" effect. Be generous with the sugar for a nice coating.
Transfer the coated cookies to a wire rack to cool completely.
Re-Coat (Optional): If you want an extra snowy appearance, you can roll the cookies in powdered sugar one more time once they have cooled completely.
Once fully cooled and coated, the cookies are ready to be enjoyed!