Cherry Linzer Bars

Preheat oven to 350 degrees F. In small bowl, combine cherries and water; microwave on high 1 minute. Set aside. Meanwhile, line 13- by 9-inch baking pan with foil, with overhang at short ends. On waxed paper, combine flour, cinnamon, baking powder, and salt. In food processor, pulse nuts and sugars until nuts are finely ground. Add butter and lemon peel; pulse until creamy. Blend in egg. Add flour mixture; pulse just until mixture comes together. Reserve 1 1/4 cups dough; chill. With floured fingers, press remaining dough into bottom of prepared pan. Stir jam into cherries; spread over crust, up to 1/4 inch from edges. With hands, roll chilled dough into 1/4-inch-thick ropes; arrange diagonally, 1 1/2 inches apart, over jam. Arrange remaining ropes around edge of pan. Bake 35 minutes or until dough is golden. Cool in pan on wire rack. Transfer to cutting board. Cut into 36 bars. Store in airtight containers, layered with waxed paper, at room temperature up to 3 days or in freezer up to 1 month. Sprinkle with confectioners' sugar to serve.