Stir together flour, baking powder, cinnamon, and nutmeg. In a large mixer bowl beat butter or margarine till softened.
Add brown sugar and beat till fluffy. Add egg, milk, and orange peel and beat well. Add flour mixture and beat till well mixed.
Stir in oats, cranberries and nuts.
Drop by rounded tablespoons onto a greased cookie sheet.
Bake in a375* oven for 10-12 minutes or till done. Remove and cool. Dip tops of cookies in orange icing to coat. Makes about 28.
<ORANGE ICING>…………………………………………………..: Stir together 1 cup powdered sugar, 1/2 teaspoon finely shredded orange peel, 1/4 teaspoon vanilla, and enough orange juice (1-2 tablespoons) to make icing of pouring consistency.