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Preheat the oven to 350 degrees F (175 degrees C). Spread walnuts onto a baking sheet. Toast in the preheated oven until nuts start to turn golden brown and become fragrant, 10 to 15 minutes. Cool to room temperature. Combine walnuts and bread crumbs in a food processor; process until finely ground but mixture is still light and airy. Spread into a shallow pan and set aside. Beat eggs and water together in a shallow bowl. Spread flour on a shallow plate. Line a baking sheet with parchment paper. Dip olives, a few at a time, into the beaten eggs. Roll in flour, then dip again into the beaten eggs. Let excess egg drip off the olives, then roll in the walnut mixture. Transfer to the lined baking sheet. Repeat until all the olives are coated with the walnut mixture. Refrigerate for at least 2 hours before frying. Heat oil in a deep-fryer or large saucepan to 360 degrees F (180 degrees C). Lower 12 olives into the oil and fry until coating is golden, about 45 seconds. Drain briefly on paper towels. Repeat with remaining olives. Serve warm.