Preparation / Directions:
Makes two 8-inch cakes
1. Combine flour, 2 tablespoons sugar, salt and lemon peel; cut in margarine with pastry blender or 2 knives until mixture resembles coarse meal.
2. Measure warm water into small warm bowl. Sprinkle in yeast; stir until dissolved.
3. Add warm milk, egg and dissolved yeast to flour mixture; beat until well blended. Stir in walnuts.
4. Cover bowl with plastic wrap, then a towel; let rest 20 minutes.
5. Spread dough evenly in 2 greased 8-inch round cake pans. Arrange half of apple slices in circles over each pan of dough.
6. Cover loosely with waxed paper brushed with peanut oil, then top with plastic wrap. Refrigerate 2 to 24 hours.
7 When ready to bake, remove from refrigerator, uncover dough and let stand at room temperature 10 minutes.
8. Combine 1/2 cup sugar and cinnamon; sprinkle half of mixture over each cake.
9. Bake in preheated 350 F. oven about 45 minutes, or until done.
10. Remove from pans and cool on wire racks.
11. Drizzle with confectioners' sugar frostin