Process 1 cup flour with walnuts in food processor until walnuts are the size of large crumbs; set aside.
Beat I Can't Believe It's Not Butter!® Spread with 1/4 cup confectioners sugar in large bowl with electric mixer until creamy, about 2 minutes. Beat in vanilla. Beat in flour mixture, remaining 1 cup flour and cinnamon just until combined. Wrap mixture in plastic wrap and chill 30 minutes.
Preheat oven to 350°. Roll dough into 1-inch balls and arrange on ungreased cookie sheets, about 2 inches apart. Bake 15 minutes or until bottoms are just golden. Cool sheets on wire rack 2 minutes. Toss in or sprinkle with remaining 1/2 cup confectioners sugar while still warm.
TIP: To easily toast chopped nuts, spread nuts in single layer on baking pan. Bake at 350 degrees, shaking pan halfway through, 6 minutes or until walnuts start to turn golden.