Preheat oven to 350 and prepare a lined baking sheet.
Combine butter, powdered sugar, vanilla and stir until combined.
Next add in the flour, salt, and water. Mix until dough is tacky.
Scoop out 2 teaspoons of dough and roll in hands into a ball. Toss the balls in the sugar until well coated and place them on the prepared backing sheet.
Using the rounded back of a 1/2 teaspoon measuring spoon, lightly press “thumbprints” in the centers of each ball.
Melt chocolate chips in microwave and pour into each thumprint.
Bake in the preheated oven until the edges are set, about 10 minutes.