*peeled and coarsely chopped 1. To prepare the pesto: Place the hazelnuts in a small baking pan. Toast in a preheated 350-degree oven for about 12 minutes, or until the papery skins start to crack. Remove from the oven and cool slightly. Then transfer to a clean kitchen towel, close the towel and rub to remove most of the skins. (The nuts will still have some skin attached.) 2. Put the nuts, garlic and salt in a food processor and process until the nuts are finely ground. Add the mint and parsley; chop finely. Then add the olive oil, orange juice and sugar. Process to a paste-like consistency. 3. To prepare the lamb and marinade: Place the lamb in a food-grade gallon-size zip-top storage bag. Stir together the orange zest, juice, garlic, peppercorns and 3 tablespoons of the pesto. Pour over the lamb, close the bag and put into a bowl. Refrigerate overnight. Turn the bag occasionally. 4. To start the gravy: Combine 3 cups broth, orange zest, juice, shallot, garlic, mint, carrot and 1/4 teaspoon salt. Bring to a boil, reduce the heat and cook at a slow simmer 20 minutes. Strain. (This can be done 24 hours in advance. Cool, cover and refrigerate.) 5. To cook the lamb: One hour before roasting, remove the lamb from refrigerator. Preheat oven to 325 degrees. Then remove the lamb from the marinade and pat with paper towels to remove excess moisture. Place on a rack in a roasting pan and sprinkle lightly with salt and pepper. Roast about 25 to 29 minutes per pound for medium rare (150 degrees). Remove from the oven and transfer the meat to a cutting board. Cover loosely with aluminum foil and set aside while preparing the gravy. 6. To finish the gravy: Remove the rack from the roasting pan and pour off the fat. Wipe the sides of the pan with paper towels to degrease. Place over 2 burners set at medium heat. Add the seasoned broth and simmer, stirring up browned juices from the bottom of the pan. Whisk together the flour and remaining 1/4 cup broth. Whisk into the pan and simmer, stirring occasionally, until lightly thickened, about 5 minutes. Whisk in 2 tablespoons pesto; adjust the seasonings and salt and pepper. 7. Carve the lamb and serve with the hot gravy on the side. Developed by CeCe Sullivan of The Seattle Times food staff. MC formatted 3/29/97 by MsRooby@sprintmail.com Recipe by: Seattle Times 3/26/97 Posted to MC-Recipe Digest V1 #546 by Rooby on Apr 03, 1997