Heat oven to 350. Combine first 7 ingredients; blend well. Stir in nuts. Let stand 5 minutes. Drop by rounded teaspoonfuls into sugar; gently toss until sugar coated. Place 2 inches apart on ungreased cookie sheets. Bake at 350 for 8 to 10 minutes. (Cookies will be soft in center.) Cool 1 minute; remove from pans. If desired, frost cookies. Combine frosting ingredients; blend until smooth. Spread on cooled cookies. Yield: 4 to 5 dozen. HIGH ALTITUDE -above 3500 feet: bake at 375 for 10 to 12 minutes.