Beat shortening, sugar and orange peel in large bowl at medium speed of electric mixer until well blended. Beat in milk and egg.
Combine flour, pudding mix and baking powder in medium bowl. Mix into shortening mixture at low speed until just blended. Stir in chocolate chips and nuts. Drop rounded tablespoonfuls of dough 2-inches apart onto ungreased baking sheet.
BAKE 12 minutes or until set. Cool 2 minutes on baking sheet. Remove to cooling rack.
