Preheat oven to 325. Wrap outside bottom and sides of 9-in springform pan with double layer of heavy-duty foil.
Crust: Combine graham crackers, butter, granulated sugar and nuts in medium bowl. Press crumb mixture onto bottom and up 1 inch of sides of pan.
Filling: Remove 2 tablespoons of morsels and set aside for garnish. Heat milk and remaining morsels in medium saucepan over low heat until morsels are melted and mixture is smooth; remove from heat. Cool to room temp.
Beat cream cheese, grandulated sugar, flour and vanilla in large mixer bowl until well combined. Add butterscotch mixture; beat until smooth. Add eggs, beat just until well combined. Pour into prepared pan. Place pan in large roasting pan; fill roasting pan with warm water half way up the side of springform pan.
Bake for 1 1/4 to 1 1/2 hours. Remove cheesecake from water. Pull foil away from pan and lift springform pan from out of foil to wire rack. Cool on rack for 15 min. Run knife around edges of pan. Cover, refrigerate for 6 hours or overnight.
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