Preheat Oven to 375ºF

In large mixer bowl, combine 2 cups flour, yeast, 1/3 cup sugar, and salt; mix well. Heat milk, water and 1/3 cup butter until very warm (120°-130º 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 enough remaining flour to make a soft dough. Knead on floured surface until smooth and elastic, about 5 minutes. Place dough in lightly oiled bowl and turn to grease top. Cover; let rise until dough tests ripe.

PREPARE FILLING: Combine 1/3 cup sugar and cinnamon; set aside.
 

Punch down dough. On lightly floured surface roll dough to a 12 x 8-inch rectangle. Sprinkle with nuts; press into dough. Brush with melted butter. Sprinkle cinnamon-sugar mixture over dough. Cut dough in half crosswise. Cut each half into 6 strips, 2 inches wide. Twist each strip 2 or 3 times with cinnamon side out. Place twists in greased 13 x 9-inch cake pan. Cover; let rise in warm place until indentation remains after touching. Bake at 375ºF for 25 to 30 minutes until golden brown. Cool 10 minutes; remove from pan. Cool.

*You can substitute Instant (fast-rising) yeast in place of Active Dry Yeast. When using Instant Yeast, expect your dough to rise faster. Always let your dough rise until ripe. Traditional methods: use equal amounts; Bread Machine: 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 on baking.