In large mixer bowl, combine 1+1/2 cups flour, yeast, sugar and salt; mix well. In saucepan, heat milk, water and 1/4 cup butter to 120-130°F (butter does not need to melt); add to flour mixture. Add egg. Blend at low speed until moistened; beat 3 minutes at medium speed. By hand, gradually stir in remaining flour to make a firm dough. Knead on floured surface until smooth and elastic, about 3 minutes. Place dough in lightly oiled bowl and turn to grease top. Cover; let rise until dough tests ripe.

Punch down dough. Shape into 1 to 1½-inch balls. Place on greased cookie sheets. Let rest 15 minutes until slightly puffy. Combine cranberry sauce and cinnamon. Using 2 fingers, make indentations in each. Spoon about 1 teaspoon of cranberry mixture into each, pressing into dough slightly with spoon. Sprinkle with nuts. Brush with melted butter. Bake at 400°F for 15 to 20 minutes until golden brown. If desired, sprinkle with powdered sugar. Serve warm or cold.

TIP: Your favorite preserves or prepared mincemeat can be used as fillings; omit combining with cinnamon. Pecan or walnut halves can be used for chopped nuts.

You can substitute Instant (fast-rising) yeast for Active Dry Yeast. Traditional methods- replace 1:1. Expect your dough to rise faster; always let your dough rise until ‘ripe’. Bread Machines- use 1/2 tsp Instant yeast (or 3/4 tsp Active Dry yeast) per cup of flour in your recipe. Visit our Lessons in Yeast & Baking for more information.