Combine 1-1/2 cups flour, sugar, undissolved yeast, spices, orange peel and salt in large mixer bowl. Heat milk, water and butter until very warm (120° to 130°F). Gradually add to flour mixture. Beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add egg and 1/2 cup flour. Beat 2 minutes at high speed. Stir in enough remaining flour to make a soft dough. Knead on lightly floured surface until smooth and elastic, about 8 to 10 minutes. Cover; let rest 10 minutes.
Set aside 10 currants for bunny’s eyes. Knead remaining currants into dough. Divide dough into 5 equal pieces. Roll each to a 24-inch rope. Divide each rope into 1 (13-inch), 1 (6-inch), 2 (2-inch), and 1 (1-inch) strips. Coil 13-inch strip to make body; coil 6-inch strip to make head. Attach head to body; pinch to seal. Shape 2 (2-inch) strips into ears and remaining 1-inch strip into tail. Attach to body and head. Place on 2 greased baking sheets. Cover; let rise in warm, draft-free place until doubled in size, about 1 hour.
Bake at 375°F for 13 to 16 minutes or until done. Remove from pans; cool on wire racks.
Powdered Sugar Glaze: Stir all ingredients until smooth.
Drizzle with Powdered Sugar Glaze. Lightly press reserved currants into heads for eyes.
Tips: The bunny parts will "cling together" as the dough rises and bakes. Do not place more than 4 bunnies on a baking sheet.