Preheat oven to 180 C. Butter the bottom and sides of a 20-23cmx30cm baking dish.
Toss nuts with cinnamon. Set aside.
Unroll phyllo pastry. Cut whole stack at once to fit the dimensions of the baking dish. Cover phyllo with a damp cloth to keep from drying out as you work.
Place two sheets of phyllo in the dish, buttering the top layer.
Sprinkle 2 to 3 tablespoons of nut mixture on top. Top with two more sheets of phyllo, butter and nuts, layering as you go. The top layer should be about 6 to 8 sheets deep.
Using a sharp knife, cut into diamond or square shapes all the way to the bottom of the dish.
Bake in preheated oven for about 50 minutes until baklava is golden and crisp.
Make syrup while baklava is baking. Boil sugar and water until sugar is dissolved. Add honey and lemon peel. Simmer for 15 to 20 minutes, then remove from heat and allow to cool. Remove lemon peel and discard.
Remove baklava from oven and immediately pour cooled syrup over it. Let cool. Leave it uncovered as it gets soggy if wrapped.