Preheat the oven to 375°F (190°C) and line two baking sheets with parchment paper.
Using an electric mixer, blend together the butter, ½ cup powdered sugar, and vanilla extract until light and fluffy. Gradually add in the flour, salt, 1 teaspoon cinnamon, nutmeg, ginger, and allspice, mixing until a dough forms. Stir in the chopped nuts if using. If the dough feels too soft, refrigerate it briefly until it firms up for easier handling.
Roll the dough into 1-tablespoon-sized balls and arrange them on the prepared baking sheets.
Bake for 7-8 minutes, or until the bottoms just begin to turn golden. Remove from the oven and allow the cookies to cool slightly until they can be handled comfortably.
In a small bowl, combine the remaining 1 cup powdered sugar with 1 teaspoon cinnamon. Roll each warm cookie in this sugar mixture until fully coated, then transfer to a cooling rack. Once the cookies are completely cooled, you may wish to roll them in additional powdered sugar for an extra coating.