Mix sugar, baking powder, cinnamon and flour. Add 2 Tbsp. butter and milk. Mix well. Put in 2 quart souffle dish.
Mix brown sugar and remaining 2 Tbsp. butter. Add water. Mix well. Pour over flour mixture. Sprinkle with chopped nuts. Put souffle dish on cookie sheet to catch any overflow. Bake at 350 for 45 minutes. Pudding rises to the top, separating from the sauce. Serve by spooning pudding first, then topping with sauce. Place dollop of whipped cream on each serving. Serve small portions, because it is very rich. Serves 8