Step 1: Preheat oven to 375F.
Step 2: Beat together butter, cream cheese and milk with an electric mixer until smooth.
Step 3: Gradually beat in sugar and vanilla until creamy; beat in flour until completely incorporated.
Step 4: Stir in walnuts by hand.
Step 5: Drop by tablespoonful on ungreased cookie sheets about two inches apart (they don't spread much, you can easily get a dozen on one standard-size cookie sheet without them running together).
Step 6: Bake for 10 minutes or until edges begin to slightly brown.
Step 7: Leave on cookie sheets for 1-2 minutes, then remove to wire racks to cool completely.
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