Preheat the oven to 350 degrees F.
In the bowl of an electric mixer fitted with the paddle attachment, mix the butter and 1 cup of sugar on medium-low speed, just until they are combined. (Don¿t whip!) Add the vanilla and 2 teaspoons water and mix until combined. In a medium bowl, sift together the flour and salt. With the mixer on low, slowly add the flour mixture to the butter mixture and mix until the dough starts to come together. Add the ginger, then dump onto a surface generously dusted with flour and shape into a flat disk. Wrap in plastic and chill for 30 minutes.
Roll the dough 3/8 inch thick and cut circles with a 2 3/4-inch plain round cookie cutter. Place the cookies on an ungreased baking sheet and sprinkle with sugar. Bake for 20 to 25 minutes, until the edges start to brown.
Cool to room temperature and serve.