1. Preheat oven to 350F
On a sheet of waxed paper, mix flower with baking powder; set aside. In large bowl of electric mixer, at medium speed, beat butter, sugar, and egg yolks until smooth and fluffy. Stir in 1/2c chopped nuts, the vanilla and flour mixture until blended.
2. Roll slightly heaping tsp of dough into a ball for each cookie. With fingers, pinch dough to form a rounded point, and shape dough to resemble an acorn. Place acorns point side up, 1in apart, on ungreased baking sheets. Bake 12 min or until golden-brown. Cool completely on wire racks.
3. Place remaining chopped nuts on sheet of waxed paper; set aside. In top of double boiler placed over hot water. or in small saucepan over low heat, melt caramels in the water, stirring until smooth and blended. Remove from heat; dip large end of cookies into caramel and them into chopped nuts. Place on sheet of waxed paper until caramel hardens. Store cookies covered, in refrigerator
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