COMBINE shortening, 1 cup powdered sugar and vanilla in bowl of electric mixer; beat on medium speed until well blended.
COMBINE flour, baking soda and salt in medium bowl. Add to creamed mixture; mix well. Stir in walnuts; mix well. Roll dough into walnut-size balls; place on ungreased baking sheets about 1 1⁄2 inches apart.
BAKE 15 minutes or until edges begin to brown slightly. Cool on baking sheets until cool enough to handle, but still warm. While still warm, roll in remaining 1 cup powdered sugar; place on cooling racks to cool completely.
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