In a large bowl, combine 1 cup flour, sugar, undissolved yeast and salt. Heat water, milk and butter until very warm (120° to 130°F). Gradually add to flour mixture. Beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add egg and 1 cup flour; beat 2 minutes at high speed. Stir in enough remaining flour to make a soft dough. Knead on lightly floured surface until smooth and elastic, about 8 to 10 minutes. Cover; let rest 10 minutes.

Roll dough to 16 x 12-inch rectangle. Transfer to large greased baking sheet. Spread evenly with Nutty Peach Filling over center-third of dough. With a sharp knife, make cuts from filling to dough edges at 1-inch intervals along sides of filling, alternating sides. Fold strips at an angle across filling, alternating sides. Cover; let rise in warm, draft-free place until doubled in size, about 1 hour.

Preheat oven to 375°F. Bake for 20 minutes or until done. Remove from sheet to wire rack. Drizzle with Powdered Sugar Glaze; sprinkle with chopped pecans.

For Nutty Peach Filling:
Combine peaches, water, sugar, corn starch, and salt in a saucepan. Bring to a boil over medium high heat. Cook 1 minute or until thick, stirring constantly. Remove from heat; add lemon juice, almond extract and pecans. Let cool.

For Powdered Sugar Glaze:
In a small bowl, combine powdered sugar and milk. Stir until smooth.