Blueberry Streusel Cobbler

1 pint fresh or frozen blueberries
1 (14oz) can sweetened condensed milk
2 tsp grated lemon peel
3/4 C plus 2 tablespoons cold butter or margarine
2 C biscuit baking mix, divided
1/2 C firmly packed brown sugar
1/2 C chopped nuts
vanilla ice cream
Sauce:
1/2 C sugar
1 Tbsp cornstarch
1/2 tsp ground cinnamon
1/4 tsp ground nutmeg
1/2 C water
1 pint blueberries

Preheat oven to 325. In bowl, combine blueberries, sweetened condensed milk and lemon peel. In large bowl, cut 3/4 cup butter into 1 1/2 cups biscuit mix until crumbly; add blueberry mixture. Spread in greased 9-inch square baking pan. In small bowl, combine remaining biscuit mix and sugar, cut in remaining butter until crumbly. Add nuts. Sprinkle over cobbler. Bake 1 hour 10 minutes or until golden. Serve warm with sauce and ice cream.

Sauce:
In saucepan, combine sugar, cornstarch, cinnamon and nutmeg. Gradually add water. Cook and stir until thickened. Stir in blueberries; cook and stir until hot.