In a saucepan set over medium heat, warm the water, milk, and 3 tablespoons butter or margarine to 125°F to 130°F (comfortably warm). Add this to the flour mixture and beat till well-combined. Beat in the eggs, one at a time, then add the remaining flour to form a soft dough. Turn the dough out onto a lightly floured surface and knead for several minutes (or knead with an electric mixer), then place it in a buttered bowl, cover, and set aside to rise till doubled in bulk, 1 1/2 to 2 hours. While the dough is rising, chop the nuts finely (or process in a food processor) and combine them with the 1 cup sugar. Set aside. Punch down the dough, and divide it into pieces the size of a small meatball, or ping-pong ball. Roll pieces in the melted butter, then roll in the sugar-nut mixture. Butter one plain tube pans/candied fruit of your choice, and a bit of brown sugar. Place the dough balls in the tube pan in layers. Pan will be 1/3 to 1/2 full. Cover the pan, and allow the dough to rise in a warm place till just about doubled in bulk, about 1 hour. Bake the bread in a preheated 375°F oven for 35 to 40 minutes, or until its golden brown. Remove it from the oven, and let it cool for 10 minutes before turning it out onto a waxed paper-lined wire rack to cool completely.