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Preheat oven to 180°C or 160°C fan. Spread walnuts on an oven tray, and bake for 3-4 mins, or until fragrant and toasted. Transfer to a plate to cool, then chop.
Place flour and cayenne in a food processor with butter and parmesan. Using pulse button, process in short bursts until the mixture resembles breadcrumbs. Add cooled walnuts and 2½ tbsp iced water, and pulse again several times until the mixture starts to clump together.
Turn out onto a sheet of non-stick baking paper, gather together gently, then roll out to 1cm thickness. Use a 5cm round cutter to cut rounds from the dough, as close together as possible. Place on an oven tray lined with non-stick baking paper. Press dough scraps together gently and re-roll. Cut out more rounds from the dough.
Press a thyme sprig into the centre of each biscuit. Bake for 15 mins, or until lightly golden. Cool on tray for 5 mins, then transfer to a wire rack to cool completely. Store in an airtight container. Package as gifts and add your favourite chilled cheese.
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