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1. For biscuits, in a medium bowl, combine flour, 1 tablespoon brown sugar, baking powder, baking soda, and 1/4 teaspoon salt. With a pastry blender, cut in 1/4 cup butter until the mixture resembles coarse crumbs. Make a well in center of flour mixture. Add milk all at once. Using a fork, stir just until dough forms a ball.
2. On a lightly floured surface, knead dough gently for 10 to 12 strokes. Roll or pat dough into a 12 x 6-inch rectangle. In a small bowl, combine walnuts, 3 tablespoons brown sugar, and cinnamon. Brush dough with the melted butter and sprinkle with nut mixture. Roll up in a spiral, starting from a short side. Pinch seam to seal. With a sharp knife, cut into six 1-inch-thick slices; set aside.
3. For peach filling, in a large saucepan, stir together 2/3 cup brown sugar, cornstarch, and lemon peel. Add peaches and water. Cook and stir until bubbly. Carefully pour hot filling into an ungreased 2-quart rectangular baking dish.
4. Arrange slices, cut side down, on hot filling. Bake in preheated oven about 25 minutes or until biscuit slices are golden. Cool slightly on a wire rack. Serve warm. Makes 6 servings.