Walnut and Pistachio Baklava

Preparation

1. For syrup:

   Step 1

   Combine all ingredients and 1 cup water in heavy medium saucepan. Bring to boil over medium-high heat, stirring until sugar dissolves. Reduce heat to medium and boil until syrup is reduced to generous 2 cups, about 15 minutes. Transfer to bowl and cool completely. DO AHEAD: Can be made 1 day ahead. Cover and chill.

2. For baklava:

   Step 2

   Position 1 rack in top third and 1 rack in bottom third of oven and preheat to 350°F. Spread walnuts on large rimmed baking sheet. Spread pistachios on another large rimmed baking sheet. Place nuts in oven and toast 5 minutes. Cool nuts. Transfer nuts to processor. Add 3/4 cup sugar, lemon peel, and ground cinnamon. Using on/off turns, blend until nuts are ground to medium-fine texture. Transfer nut mixture to large bowl; mix in dried apples.

   Step 3

   Place phyllo sheet stack on work surface; cover with sheet of plastic wrap, then damp kitchen towel. Brush 13 x 9 x 2-inch metal baking pan with some melted butter. Arrange 1 phyllo sheet in pan with half of phyllo sheet hanging over 1 long side. Brush phyllo in pan with some melted butter. Fold overhang over to make two 12 x 8 1/2-inch layers. Brush with some melted butter. Repeat stacking and buttering with 4 more phyllo sheets, making 10 layers total. Spread 1/3 of nut mixture (generous 2 cups) over phyllo in pan to within 1/2 inch of edge. Repeat layering 2 more times with 5 phyllo sheets and 1/3 of remaining nut mixture each time. Top with 5 more folded phyllo sheets. Using sharp knife, cut through top phyllo layers lengthwise (do not cut through to bottom of pan) to make 4 strips, then cut phyllo crosswise to make 16 rectangles. Bake until phyllo is golden, about 45 minutes.

   Step 4

   Gradually spoon cold syrup over hot baklava. Cool to room temperature. DO AHEAD: Can be made 1 day ahead. Cover; let stand at room temperature.

   Step 5

   Cut each baklava rectangle crosswise in half for total of 32 pieces. Transfer baklava to platter and serve.