Preheat the oven to 350 F. In a large bowl, combine butter with powdered sugar until fluffy.
Add in flour and vanilla extract and mix until fully combined. In a shallow dish, combine granulated sugar and ground cinnamon.
Roll the cookie dough into balls, and flatten each one slightly. Roll into the cinnamon sugar mixture. Place onto a large ungreased baking sheet. Bake for 10-12 minutes.