1.Preheat oven to 240°C (220°C fan-forced).
2.Make pesto. Process coriander, cheese, nuts and garlic until combined. With motor operating, gradually add oil in a thin, steady stream, add water, process until smooth.
3.Sift flour, sugar and salt into medium bowl, rub in butter with fingertips. Stir in enough milk to mix to a soft, sticky dough.
4.Turn dough onto floured surface, knead until smooth. Roll dough to 17cm x 30cm rectangle. Spread dough with pesto, top with crumbled cheese, sprinkle with pepper.
5.Cut dough crossways into 3cm strips. Hold both ends of dough strip in each hand, loop dough as if to make a knot, tuck ends under neatly. Place knots on greased oven trays about 2cm apart. Bake about 15 minutes, serve warm.