1. Heat oven to 350° F. In large bowl, beat butter, powdered sugar and vanilla with spoon. Stir in flour. (If dough is crumbly, mix in 1 to 2 tablespoons butter or margarine, softened.)
2. Roll dough 1/2 inch thick on lightly floured surface. Cut into small shapes by hand or use cookie cutters. Place 1/2 inch apart on ungreased cookie sheet.
3. Bake 14 to 16 minutes or until set and bottoms be light golden brown. Immediately remove from cookie sheet to wire rack. Cool completely, about 30 minutes.