Dissolve yeast in water. Add 1/3 cup sugar, 1/3 cup butter and salt to milk; cool.
Add dissolved yeast, eggs and flour to make a stiff batter.
Cover with towel and let rise until double in bulk.
Punch down and let rise again until double.
Roll dough into small balls about the size of a walnut.
Dip balls lightly in melted butter, then roll in mixture of 3/4 cup sugar, cinnamon and nuts.
Layer balls loosely in lightly greased tube pan.
Cover with towel and let rise for 30 minutes.
Bake at 400 degrees for 10 minutes; reduce heat to 350 degrees and bake an additional 30 minutes or until golden.
Let cool for 5 minutes and loosen bread from edges of pan.
Place plate on top and invert.
Sprinkle top lightly with powdered sugar.