Eskimo Snowballs

1 cup butter or margarine, softened
4 tablespoons water
1 teaspoon vanilla extract
6 tablespoons cocoa powder
1-1/2 cup granulated sugar
4 cups quick-cooking oats
powdered sugar
flaked coconut
chopped nuts

Cream butter with water and vanilla. Add sugar, cocoa, and oatmeal, mix well. Roll into 1-inch balls. Add more water if necessary to make the dough stick together. Divide the balls in half. Roll half the balls in confectioners sugar and coconut, then roll the other half in the chopped nuts. Refrigerate until serving.