Preheat oven to 325F.
Combine flour, sugar, icing sugar and ground almonds in a bowl. Cut cold butter into smaller chunks. Working quickly cut in butter with pastry blender. Add egg and vanilla.
Stir to mix and knead into a dough. If mixture feels a little dry add a couple drops of water.
Shape dough into logs. Cut off approximately 1/2 inch pieces. Shape each piece into a crescent and place on parchment lined baking sheet.
Bake 10-12 minutes or until edges are starting to brown. Remove from oven and gently toss with either icing sugar or regular white sugar.