Beat the butter and sugar in a bowl, add the egg and essence in succession and stir everything well. Sift the flour with the baking powder and 1 teaspoon cinnamon and stir it into the butter mixture. Knead a dough and leave it for 30 minutes in the refrigerator.
Lay out baking paper in a tray and turn the oven on to heat up to 347°F (175 °C). Mix together the chopped walnuts, 2 tablespoons cinnamon and sugar. Roll each walnut-sized ball (made from the dough) in this mixture.
Arrange the balls in the tray with some distance between each other. Put the biscuits with cinnamon and walnuts in the oven to bake for about 10-12 minutes.