Preheat oven to 170 degrees c.
Grease a 9-inch cake pan.
Mix the coffee and water in a small bowl and keep aside.
Beat the butter and sugar until smooth.
Add in the eggs one by one and keep beating until the mixture becomes fluffy.
Fold in the flour and baking powder.
Add 2 tbsp of the coffee water and stir in the walnuts.
Bake for 40 minutes or until the wooden skewer comes out clean.
Let the cake cool for an hour.
To ice the cake: Beat everything together with a hand whisk and frost over the cake.
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