Pre-heat the oven to 175°C (350°F) and grease/line 2 x 8" (20cm) cake tins.
Using a food processor, blitz the sugar and walnuts together until the nuts are nice and fine.
Add the remaining ingredients (apart from the milk) and process until a thick batter forms. Add 1-2 tablespoons of milk a bit at a time until a soft, slow dropping consistency is achieved.
Divide the mixture equally between the two pans and then bake for around 20-25 minutes. The cakes are ready when they bounce back when gently pushed down (or an inserted skewer comes out clean).
Take out of the oven and let them cool for about ten minutes, then turn out onto a wire rack (top side down) until they are completely cool.
In the meantime, prepare the frosting: beat the butter and cream cheese together until nice and smooth. In a cup, mix the water and instant coffee and beat into the butter mixture. Sift in the icing sugar and then add as much as you need to reach a thick, spreading consistency.
Spread around one third of the frosting on the flat side of one of the cakes. Place the other cake on top and then slather the remaining frosting all over the top of that one. Decorate with walnuts (optional) and enjoy!