Combine 1 cup flour, sugar, undissolved yeast and salt in a large mixing bowl. Heat water, milk and butter until very warm (120°to 130°F). Gradually add to dry ingredients; beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add eggs and 1/2 cup flour; beat 2 minutes at high speed, scraping bowl occasionally. Stir in remaining flour to make a stiff batter. Turn into 2 greased 8- or 9-inch square pans. Sprinkle evenly with Sugar-Nut Topping (see directions below). Cover; let rise in warm, draft-free place until doubled in size, about 1 hour.
Bake at 350°F for 20 to 25 minutes or until done. Remove from pans; cool on wire racks.
Sugar-Nut Topping: Combine butter and brown sugar with a pastry blender or two knives until mixture resembles coarse crumbs. Stir in chopped walnuts.
* 1 recipe also makes 1 coffeecake and 12 muffins or 24 muffins
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