Heat oven to 350. Beat sugar, peanut butter and margarine unti fluffy. Blend in water, egg and vanilla; add combined dry ingredients, mixing well. Shape into 1 inch balls. Place on ungreased cookie sheet; flatten with glass dipped in sugar. Bake 8-10 minutes or until golden brown. Cool completely. In saucepan over low heat, melt cocolate and shortening stirring constantly until smooth.* Top each cookie with 1/2 tsp. chocolate; sprinkle with nuts. Chill until set. *Note: Place chocolate and shortening in glass container; microwave at HIGH 1 to 2 minutes, stirring after 1 minute and then every 30 seconds until smooth. Recipe by: Quaker Oats Posted to recipelu-digest Volume 01 Number 388 by James and Susan Kirkland on Dec 20, 1997