Preheat oven to 350 degrees. First combine dry ingredients in a medium bowl. Add in wet ingredients and combine. Add batter to greased doughnut pan. Bake for 8-10 minutes or until a toothpick inserted comes out clean. Toss the pecans and toffee in a food processor until a pecan flour forms. Transfer to a separate bowl. In another bowl combine powdered sugar and water until smooth. While doughnuts are still slightly warm, coat with glaze. Immediately transfer to the pecan mixture and coat with pecans. Let cool on a cookie sheet lined with parchment or wax paper.