Preheat oven to 325°. Place pecaans and 1/2 cup sugar in a food processor. Process until pecans are finely ground.Transfer to a large bowl.
Stir and remaining sugar into pecan mixture.Cut in butter until crumbly. Transfer mixture to a clean work surface; knead gently to form a smooth dough.About 2 min. ( mixture will be very crumbly at first. But will come together and form a dough as it is kneaded) Divide dough in half.
On a lightly floured surface. Roll each portion of dough to 1/4" thick. Cut with a floured cookie cutter. Place cutouts 1" apart on ungreaed baking sheet.
Bake 10-12 min.or until edges begin to brown .Cool on pans 5 min. Meanwhile in a shallow bowl, mix vanilla sugar ing.Mix well until blended.
Dip warm cookies in vanilla sugar to coat. Cool completely on wire racks. Store in airtight container.
