Begin by chopping the walnuts in a food processor. You want them finely chopped but not ground to a powder. Once chopped, transfer them to a mixing bowl and add ¾ cup sugar, ground cinnamon, and nutmeg. Toss to combine and set aside.
Take your thawed phyllo dough and carefully unroll it on a clean, flat surface. Make sure to keep the unused sheets covered with a damp cloth to prevent them from drying out.
Preheat your oven to 350°F (175°C). Brush the bottom of your baking dish with melted butter. Lay down one sheet of phyllo dough, brushing it lightly with butter. Repeat this process for about 8 sheets, layering and buttering each one.
Once you have your base of phyllo, sprinkle about 1 cup of the nut mixture evenly over the phyllo. Cover the nuts with 2 more sheets of buttered phyllo. Repeat the layering process, adding nuts and more phyllo, until you’ve used all the nuts, finishing with about 8-10 sheets of buttered phyllo on top.
Using a sharp knife, cut the baklava into diamond or square shapes. This is crucial as it allows the syrup to soak into the layers later on.
Bake the baklava in your preheated oven for about 45-50 minutes or until it is golden brown and crisp.
While the baklava is baking, prepare the syrup. In a small saucepan, combine the remaining ¼ cup sugar, water, honey, lemon juice, salt, and optional cinnamon stick and orange rind. Bring to a boil, then reduce to a simmer for about 10 minutes. Remove from heat and let it cool slightly.
Once the baklava is out of the oven, immediately pour the warm syrup evenly over it. Allow it to sit for several hours or overnight at room temperature to soak up the syrup.
