In a large bowl, cut butter into flour until pieces are peasize. Sprinkle 1 tablespoon of the water over part of the mixture; gently toss with a fork. Push to side of bowl. Repeat until all is moistened. Divide dough in half. Form each into a ball and wrap in clear plastic wrap. Refrigerate, if necessary, for easier handling.
Pinch off about 1 tablespoon of the dough. On a lightly floured surface, roll the dough into a rope about 1/4 inch thick and 6 to 8 inches long. Join the ends together and dip into the sugar to coat. Twist the ropes to form a figure-eight and place on an ungreased cookie sheet. Repeat with the remaining dough.
Bake in a 375 degree F oven for 10 to 12 minutes or until firm and lightly browned on bottoms. Transfer cookies to wire racks. Cool. Makes 56 cookies.