Bring water and sugar to a boil in a small pot. Stir until the sugar is dissolved. While the sugar mixture is boiling, you can toast the walnuts in another skillet on the stovetop or on a baking sheet in the oven at 300 °F (149 °C) for about 7-10 minutes. You really just want it lightly toasted. Alternatively, you could skip this altogether and just immediately add the walnuts to the water/sugar mixture. Let boil for 2 minutes then using a slotted spoon, scoop the walnuts out and lay on a parchment paper-lined baking sheet to let cool.
Mix all the ingredients for the sauce and set aside.
In a deep pot, heat up about 3 cups of canola or vegetable oil. Attach a deep frying thermometer to the side of the pot to ensure proper temperature. You'll want to keep it steady at 375 °F (191 °C).
While the oil is heating up, in two separate bowls, add cornstarch in one and eggs (whisked) in another. Once the oil is almost to temperature, begin battering up the shrimp in batches by dipping the shrimp in the egg then directly into the cornstarch. Shake off the excess. Gently place into the oil then work in batches until all shrimp has been coated and fried. Place fried shrimp on a paper towel-lined plate to cool then onto a wire baking rack.
Once the shrimp all done, add the shrimp to a large bowl and pour sauce all over and toss to coat.