1Heat oven to 425°F. Lightly grease cookie sheet. In medium bowl, beat 8 ounces cream cheese, 1/3 cup sugar, the lemon peel and lemon juice with electric mixer on medium speed until smooth; reserve.
2In large bowl, place Bisquick mix. Cut in 3 ounces cream cheese and the butter using pastry blender (or pulling 2 table knives through ingredients in opposite directions) until crumbly. Stir in milk. Place dough on surface well sprinkled with Bisquick mix; roll in Bisquick mix to coat. Knead 8 to 10 times.
3Roll dough into 12x8-inch rectangle. Place on cookie sheet. Spread reserved cream cheese mixture down center of rectangle. Make cuts, 2 1/2-inches long, at 1 inch intervals on 12 inch sides of rectangle. Fold strips over filling, overlapping strips. In small bowl, mix 2 tablespoons sugar and the cinnamon; sprinkle over top.
4Bake 12 to 15 minutes or until golden brown. Cool 10 minutes. Carefully place on cooling rack; cool completely. Spoon pie filling down center of coffee cake. Sprinkle with walnuts. Store in refrigerator.