Place fruit in a small bowl and sprinkle with juice. In a large mixing bowl cream butter and sugar. Add eggs, one at a time and beating well after each addition. Beat in vanilla. Combine the flour, baking powder and salt, then gradually add to creamed mixture. Stir in pistachios and lemon peel. Drain fruit and stir into dough.
On a lightly floured surface divide dough in half. Place parchment paper on a baking sheet (if you don't have any simply spray the cookie sheet with cooking spray). Shape each half into 10 x 2 inch rectangles. Bake at 325 for 25 minutes or until golden brown. Cool for 5 minutes.
Transfer to cutting board and with a serrated knife cut each loaf into 15-20 slices about 1/2 inch thick. Place cut side down on baking sheets and bake for 12-15 minutes, turning once. Remove to wire racks to cool.
For icing, combine powdered sugar and lemon peel in a small bowl, stir in enough milk to achieve desired consistency and drizzle over biscotti. Store in an airtight container.