Orzo with Summer Squash and Toasted Hazelnuts

1 1/2 cups orzo (10 oz)
3 tbsp butter
3 tbsp olive oil
1 finely chopped shallot (0r use leeks or half a sweet onion)
2 medium zucchini cut into 1/3 inch dice
2 medium yellow squash, cut into 1/3 inch dice
1 tsp salt
black pepper to taste
3/4 cup hazelbuts, toasted, loose skins rubbed off and coarsely chopped
1/2 cup chopped fresh flat-leaf parsely
1/2 cup chopped fresh basil
2tsp finely grated lemon zest

Cook orzo in a pot of boiling salted water until al dente. Reserve 1/2 cup cooking water, then drain orzo in colander. While orzo is cooking, heat butter and oil in a deep 12 inch heavy skillet over moderately high heat until foam subsides, then saute until vegetables are just tender, about 5 minutes. Remove from heat and stir in nuts, parsley, basil and zest. Add cooked orzo to skillet and stir gently. If mixture seems dry, moisten with some reserved cooking water. Season with salt and pepper. Serve warm or at room temperature.

from Gourmet, August 2003 via www.epicurious.com