Beat butter about 30 seconds until lighter and fluffier. Add powdered sugar, beat to combine, scraping down as needed.
Add water and vanilla. Beat until mixed. Beat in flour, cocoa and espresso powder. Stir in pecans (I used Millican Pecan Company pecans) Chill dough about 30 minutes to make it easier to handle.
Preheat oven to 325. Shape dough into about 1-inch sized balls. Place on ungreased cookie sheet (I use my Anolon cookie sheet) Gently pat. Bake about 15 minutes just until bottoms are lightly brown. Cool.
Mix together powder sugar, cocoa and espresso coating in a resealable bag. Add a few cooled cookies to bag at a time and gently shake to coat.