In a large mixing bowl combine 2 cups of the flour and the yeast; set aside.
In a medium saucepan heat and stir the 1 cup milk, the 3/4 cup butter, the granulated sugar, and salt just until warm (120 degree F to 130 degree F) and butter almost melts. Add milk mixture to dry mixture along with the egg yolks. Beat with an electric mixer on low to medium speed for 30 seconds, scraping side of bowl constantly. Beat on high speed for 3 minutes. Using a wooden spoon, stir in lemon peel and as much of the remaining flour as you can.
Turn dough out onto a lightly floured surface. Knead in enough of the remaining flour to make a moderately soft dough that is smooth and elastic (3 to 5 minutes total). Place dough in a lightly greased bowl, turning once to grease the surface. Cover; let rise in a warm place until double in size (for 1 to 1-1/2 hours).
Meanwhile, prepare Apricot Filling. Set filling aside to cool.
Punch dough down. Turn dough out onto a lightly floured surface. Divide dough in half. Cover; let rest 10 minutes. Grease 2 baking sheets.
Shape each half of the dough into 12 balls (24 balls total), tucking the edges under to make smooth tops. Place balls 3 inches apart on prepared baking sheets. Flatten each ball to 2-1/2 inches in diameter. Cover; let rise in a warm place until nearly double (about 35 minutes).
Using your thumb, make an indentation in the center of each dough round. Spoon about 2 teaspoons of the Apricot Filling into each of the indentations. Lightly brush edges of dough with the 2 tablespoons melted butter or milk. Bake in a 375 degree F oven for 12 to 15 minutes or until golden. Transfer to wire racks; cool completely. Lightly sift powdered sugar over the tops. (If desired, store in the refrigerator for up to 2 days.) Makes 24 rolls.
In a small saucepan combine snipped dried apricots and enough water to cover apricots by 1 inch. Bring to boiling; reduce heat. Simmer, covered, 10 to 15 minutes or until apricots are very soft. Drain, reserving 2 tablespoons of the cooking liquid. In a blender container or food processor bowl place the softened apricots, reserved cooking liquid,granulated sugar, lemon juice, ground cinnamon, and ground nutmeg. Cover; blend or process until smooth. Scrape down sides as necessary.