Preheat oven to 350ºF.. Grease & lightly flour a baking sheet.
Cream ½ cup butter, cream cheese and milk in a medium bowl with an electric mixer on medium speed until well blended. Beat in brown sugar and ½ cup apricot preserves.
In a medium bowl, combine flour, baking powder, cinnamon and salt. Mix into creamed mixture. Stir in ½ cup nuts. Drop by 2 tablespoonfuls of dough into a mound to form each cookie. Place cookies 2” apart on baking sheet. Bake for 14 minutes. Cool on baking sheet one minute. Remove to a wire rack to finish cooling before frosting.
Frosting: In a small bowl combine confectioners sugar, ¼ cup preserves and 1 tablespoon butter with an electric beater until well blended. Frost cooled cookies and sprinkle with finely ground pecans.