First, preheat the oven to 350, and line a cookie sheet with parchment paper (or a silicone liner).
In a medium bowl, beat together with an electric mixer on medium speed the butter, sugar, vanilla extract, almond extract, and warm water.
Next, sprinkle the flour and almond flour on top, and beat until combined. At first, the dough will seem too crumbly but keep beating until it forms clumps.
Scoop out tablespoon-sized balls of the dough, roll it gently in your hands, and form a crescent shape. Place each crescent on the prepared baking sheet, and bake for 14-16 minutes. Don’t be afraid of light browning on the edges and golden brown on the bottoms of the cookies—the surface won’t turn brown at all.
Let the cookies cool on the sheet for a few minutes.
Have the powdered sugar ready in a shallow bowl. Dunk each cookie in the powdered sugar, and place on a serving tray.