Combine 2 1/2 cups flour, 2/3 cup sugar, undissolved yeast, lemon peel and salt. Heat milk, water and butter until very warm (125? to 130?F). Butter does not need to melt. Gradually add to dry ingredients; beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add 3 eggs and 1/2 cup flour; beat 2 minutes at high speed. With spoon, stir in 3/4 cup nuts and enough remaining flour to make soft dough.
Knead on lightly floured surface until smooth and elastic, about 6 to 8 minutes. Cover; let rest on floured surface 10 minutes.
Reserve 1/4 of dough. Divide remaining dough into two pieces; roll each to 34-inch rope. Loosely twist ropes together. Place on large baking sheet sprayed with cooking spray. Shape into circle; pinch ends to seal. Divide remaining dough into 6 equal pieces; form into oval rolls. Place on separate large baking sheet sprayed with cooking spray. Spray top of wreath and rolls with cooking spray. Cover; let rise in warm, draft-free place until doubled in size, about 30 to 45 minutes.
Beat egg white with 1 tablespoon water; brush on wreath. Sprinkle with remaining sugar and almonds. Bake at 350?F for 15 to 20 minutes for rolls and 35 to 40 minutes for wreath, or until done. Switch positions of sheets after 8 to 10 minutes for even browning. Remove from sheets; cool on wire racks. Frost rolls and decorate as desired.
Makes 1 basket and 6 rolls ++++++++++++++++++++
Frosting: Combine 1 cup powdered sugar and 1 to 2 tablespoons milk. Beat until smooth.
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