In large bowl, combine 1-1/2 cups flour, sugar, un-dissolved yeast and salt; set aside. Heat milk, water, and 1/3 cup margarine until warm (105 degrees F to 115 degrees F).

 

Stir-in dry ingredients. Stir-in eggs and remaining flour to make stiff batter; brush top lightly with some of remaining margarine. Cover tightly with plastic wrap; refrigerate 2 hours or up to 3 days.

 

Meanwhile combine walnuts, brown sugar, and lemon peel; set aside.

 

Punch dough down. On lightly floured surface, divide dough in half. Roll each half into a 21 x 8 inch rectangle. Brush middle third of one rectangle, covering 8 x 7 inch portion, with 1 Tbsp melted margarine; sprinkle with 1/4 of walnut filling. Fold one of the remaining dough thirds over filling. Brush surface of folded dough with 1 Tbsp margarine; sprinkle with 1/4 of the filling. Fold remaining dough third over filling; pinch edges to seal. Cut into 8 one-inch wide strips.

 

Twist each strip, in opposite directions, 3 times. Place on greased baking sheet. Repeat with remaining rectangle.

 

Cover; let rise in warm, draft-free place until doubled in size, about 20 to 30 minutes. Bake at 375 degrees F for 15 minutes or until done. Cool on wire racks. Drizzle with lemon icing.

 

Lemon Icing: Combine confectioners' sugar and lemon juice. Beat until smooth.