Heat oven to 350*. Combine first 7 ingredients; blend well. Stir in nuts. Let stand 5 minutes. Drop by rounded teaspoonsful into sugar; gently toss until sugar coated. Place 2 inches apart on ungreased cookie sheet. 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.