1. Preheat oven to 350°; lightly grease (or line with parchment paper) two baking sheets.
2. In a bowl, beat the butter, sugar, oil, water, egg, pudding mix, vanilla, salt, and baking powder together until smooth. Add in the flour and nuts; beat until everything is well combined; the dough will be stiff.
3. Roll or scoop the dough into chestnut-sized balls; roll them in granulated sugar, if desired and place them on the prepared baking sheets, leaving a 1- 2 inch space between. I use a 11/2 inch diameter cookie scoop to yield about 3 doz. Cookies.
4. Bake for 13-15 minutes, until they are just barely beginning to brown around the edges and are light brown on the bottom. Remove them from the oven and transfer to a rack to cool completely.