In a large mixing bowl beat butter with an electric mixer on medium to high speed for 30 seconds. Add the granulated sugar; beat until combined, scraping sides of bowl occasionally. Beat in water and vanilla until combined. Beat in as much of the flour as you can with the mixer. Using a wooden spoon, stir in any remaining flour and the chopped pecans.
Shape dough into 1-inch balls. Place 1 inch apart on an ungreased cookie sheet.
Bake in a 325 degree F oven 20 minutes or until bottoms are light brown. Transfer cookies to a wire rack; cool completely.
In each of three bowls place 1/3 cup of the sifted powdered sugar. Add a different color of edible cake sparkles or colored sugar to each bowl. Gently roll and shake cooled cookies in desired powdered sugar mixture. Makes 36.