Dissolve yeast in warm water. Scald the milk: Heat in a saucepan on medium-low, stirring until bubbles begin to form around the edges. Turn off heat and do not let boil.
Add sugar, butter and salt to scalded milk when milk is lukewarm. Add yeast, eggs and flour. Beat thoroughly. Cover and let rise until double. Stir down and let rise again. Then take rounded teaspoons of dough and dip in melted butter, then into a mixture of 1½ cups sugar, ¾ cup nuts and 3 teaspoons of cinnamon.
Pile balls loosely in ungreased angel food pan. Let rise 30 minutes. Then bake 40 minutes at 350°. Invert pan on plate immediately.