1. Put 1 cup sugar into a Heavy skillet and stir slowly with a wooden spoon over medium heat until the sugar is melted and caramelized to a golden brown color. Add the water and stir until the sugar is completely dissolved. Add the remaining 2 cups sugar, evaporated milk and salt. Place over low heat and stir constantly until the mixture boils. Cook, stirring frequently, until it reaches the soft ball stage (236 degrees). 2. Remove from heat; cool to lukewarm. Do not stir. 3. Add the orange peel and nuts. Beat vigorously until the candy loses its gloss and will hold its shape when dropped from a spoon. 4. Pour into lightly greased (margarine) 8 x 8 inch baking dish. Cool until set. Cut into squares before the candy becomes too firm.