In a mixing bowl, cream butter, peanut butter and sugars. Add eggs, one at a time, beating well after each addition. Beat in extracts. Combine flour, baking soda and salt; gradually add to the creamed mixture. Stir in nuts.
Drop by tablespoonfuls 2 in. apart onto greased baking sheets. Flatten with a glass dipped in sugar. Bake at 350 degrees F for 10-12 minutes or until the edges are lightly browned. Remove to wire racks to cool.