To prepare the donuts: In an electric stand mixer, add water and yeast, stir with a fork and leave to rest for 5 minutes until the yeast dissolves.
Into the same bowl, add the rest of the ingredients for the dough and whisk at high speed (for about 2 minutes) until the mixture becomes a smooth batter.
Cover the bowl with a plastic wrap and let the dough rest in a warm place for at least 1 hour to rise.
Into a medium sized frying pan add vegetable oil to deep fry the donuts. Heat the oil at high heat.
While the donuts are frying, use a slotted spoon to push them into the oil and turn them on all sides. Fry until golden brown. Place on paper towel to drain. Repeat with the rest of dough.
When frying is completed, place the donuts on a large platter, drizzle with the honey and sprinkle with cinnamon and chopped walnuts