Beat butter at medium speed with an electric mixer until creamy; gradually beat in 1 1/2 cups sugar. Beat in egg and extract.
Press zucchini between paper towels to remove excess moisture; stir into butter mixture.
Combine flour, baking powder, and cinnamon; gradually add to butter mixture, beating at low speed until blended. Stir in morsels and nuts. Drop by heaping teaspoonfuls onto lightly greased baking sheets.
Bake at 350 for 15 minutes; remove to wire racks to cool.