Combine ingredients in mixing bowl. Mix until creamy. Tint as desired with food coloring. Drop small spoonfuls onto waxed paper. Decorate with nuts, candied fruits, or silver dragees. Let stand to become firm.
Mint Wafers: Follow above recipe, except use 2 1/2 cups powdered sugar and substitute peppermint extract for vanilla. Knead mixture with hands. Shape into 1-inch balls and place on waxed paper. Flatten with tines of a fork.
Other flavorings and food colorings can be substituted as well.