Combine flour and baking soda. Beat butter and 2-1/4 cups granulated sugar in large bowl with mixer until light and fluffy. Blend in vanilla.
Add eggs, 1 at a time, beating well after each addition.
Add flour mixture alternately with sour cream, mixing well after each addition.
Pour half the batter into greased and floured 12-cup fluted tube pan or 10-inch tube pan.
Combine cinnamon and remaining granulated sugar in medium bowl; stir in nuts.
Sprinkle over batter in pan; cover with remaining batter.
Bake 1 hour 15 min. to 1 hour 25 min. or until toothpick inserted near center of cake comes out clean. Cool in pan 10 min. Invert cake onto wire rack; gently remove pan. Cool cake completely.
Mix powdered sugar and milk until blended; drizzle over cake.