In a 3 qt. mixing bowl or casserole, combine sugars, water and cinnamon. Cover and microwave on high for 3 minutes; stir well. Microwave uncovered 5 to 8 minutes, or until soft ball forms when small amount is dropped in cold water. (If mixture boils near top of dish, open door occasionally to slow down boiling.)
Stir in vanilla and nuts until coating sugars. Spread on wax paper. Let stand until firm. Store in airtight container.
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