Combine 1 cup flour, sugar, undissolved yeast and salt in a large mixer bowl. Heat milk, water and butter until very warm (120o to130oF). Add to flour mixture. Beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add eggs, lemon peel and 1 cup flour. Beat 2 minutes at medium speed. Stir in enough remaining flour to make a stiff dough. Cover tightly with plastic wrap; refrigerate 2 to 24 hours.
Remove dough from refrigerator; divide into 12 equal pieces. Divide each piece into 1 small, 1 medium and 1 large piece. Roll into smooth balls. Arrange balls in a row on greased baking sheets, with edges touching to make a snowman. Flatten slightly with palm of hand. Repeat with remaining dough to make 12 snowmen. Allow 2 inches between snowmen on baking sheets. Cover; let rise in warm, draft-free place until doubled in size, about 35 to 45 minutes.
Bake at 375oF for 15 minutes or until golden brown. Remove from sheet; cool on wire rack, Drizzle with Lemon Glaze; decorate with chocolate chips, raisins, nuts, red hots or candies for face and buttons. Use fruit snack strips to make a scarf.
Combine powdered sugar and lemon juice in a small bowl. Add enough water to make glaze spreading consistency. Stir until smooth.