In a large mixing bowl, start by creaming the softened butter and 3/4 cup of powdered sugar together. Using a hand or stand mixer, beat them until the mixture is light, fluffy, and pale in color. This step incorporates air into the dough, which is crucial for a tender cookie.
Next, gradually add the all-purpose flour and salt to the creamed butter and sugar mixture. Mix on low speed until the flour is just combined. Be careful not to overmix, as this can lead to a tough cookie. The dough should be soft and crumbly at this stage.
Now it's time for the best parts! Stir in the vanilla extract, the finely chopped maraschino cherries, and the optional chopped nuts. Use a spatula to gently fold these ingredients into the dough until they are evenly distributed. This gentle folding motion keeps the dough tender.
Preheat your oven to 350°F (175°C) and line a baking sheet with parchment paper. Scoop the dough and roll it into small, 1-inch balls between your palms. Place the dough balls on the prepared baking sheet, leaving a little space between them for even baking.
Bake for 12-15 minutes, or until the bottoms are just lightly golden. The tops will still look pale. Let the cookies cool on the baking sheet for just a few minutes until you can handle them. While they are still warm, roll them generously in the additional powdered sugar until they are fully coated.
Transfer the coated cookies to a wire rack to cool completely. The warmth of the cookie helps the first layer of powdered sugar melt slightly and stick. Once cool, you can roll them in powdered sugar a second time for a thick, snowy finish.