Thaw pastry sheet at room temperature 30 minutes.
Mix egg and water in small bowl.
Microwave chocolate, milk and butter in medium microwavable bowl on HIGH 1-1/2 to 2 minutes or until chocolate is almost melted, stirring halfway through heating time. Stir until chocolate is completely melted.
Unfold pastry sheet on lightly floured surface. Roll into 16x12-inch rectangle. Spread pastry evenly with chocolate mixture to within 1-1/2 inches of edges. Sprinkle walnuts over chocolate. Starting at short side, roll pastry sheet up jelly roll-style. Place, seam-side down, on ungreased cookie sheet. Tuck ends under to seal. Brush with egg mixture.
Bake at 375°F for 35 minutes or until pastry is golden. Cool about 30 minutes on cookie sheet on wire rack before serving. Sprinkle with powdered sugar. Slice and serve warm.
Makes 8 servings.
Thaw, unfold and roll out remaining pastry sheet from package. Cut into decorative shapes using cookie cutters. Press shapes onto top of strudel. Brush tops with egg mixture. Bake as directed.
Date: October 5, 2002