Heat oven to 325°F (if using dark or nonstick pan, heat oven to 300°F). In medium bowl, stir together flour and granulated sugar. Beat in butter with electric mixer on medium speed until blended. On bottom of ungreased 13x9-inch pan, press dough.
Bake 20 to 25 minutes or just until edges are lightly browned. Cool completely in pan on cooling rack, about 30 minutes.
In medium bowl, beat cream cheese and powdered sugar on medium speed until blended. Beat in pudding mix (dry) and milk. Spread over crust. Sprinkle nuts over top. Refrigerate about 1 hour or until set. For bars, cut into 6 rows by 6 rows. Store covered in refrigerator.