Stir together the flour, baking powder, salt, and sugar. Blend in 1/4 cup shortening until fine like cornmeal. Add to this 1 beaten egg, milk, and vanilla. Beat just enough to mix. Pour half of the batter into a well greased and floured 9 x 9 inch pan.
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For streusel, mix sugar, flour, and cinnamon. Blend in butter and add nuts. Sprinkle with half of streusel mixture. Then add remaining batter and put the rest of the streusel over the top. Bake 30-40 minutes at 350 degrees.
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