Preheat Oven to 375F

In large mixer bowl, combine 2 cups flour, yeast, ⅓ cup sugar, and salt; mix well. Heat milk, water and ⅓ cup butter until very warm (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 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 ⅓ 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 375F for 25 to 30 minutes until golden brown. Cool 10 minutes; remove from pan. Cool.