Preheat oven to 375°F. Lightly grease cookie sheets; set aside. In large bowl cream butter and 1/2 cup sugar; add lemon extract and peel, beating until well blended. In medium bowl combine flour, nuts, cinnamon, cardamom and nutmeg; add to creamed mixture until well blended. Stir in "M&M's"® Chocolate Mini Baking Bits. Using 1 tablespoon of dough at a time, form into crescent shapes; place about 2 inches apart onto prepared cookie sheets. Bake 12 to 14 minutes or until edges are golden. Cool 2 minutes on cookie sheets. Gently roll warm crescents in remaining 1 cup sugar. Cool completely on wire racks. Store in tightly covered container.
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