In a small saucepan, cook apricots in water over medium heat for 10 minutes or until softened. Drain, cool and chop; set aside. In a large bowl, cream butter and confectioners' sugar until light and fluffy. Gradually add 1 cup flour until well blended.
Press into a greased 8-in. square baking dish. Bake at 350° until lightly browned, about 20 minutes.
Meanwhile, in a small bowl, beat eggs and brown sugar until blended. Beat in vanilla. In a small bowl, combine the baking powder, salt, and remaining flour; gradually add to egg mixture. Stir in apricots and nuts. Pour over crust.
Bake at 350° until set, about 30 minutes. Cool on wire rack. Dust with confectioners' sugar; cut into bars.