In a large heavy saucepan combine all ingredients except vanilla and walnuts and cook over moderately low heat stirring constantly, until sugar is disolved. Bring mixture to a boil over high heat and boil, stirring constantly, 2 minutes. Remove pan from heat and stir in vanilla. Beat mixture with a wooden spoon 7 minutes, or until it behins to lost its gloss, lightens in color, and thickens. (Be careful not to overbeat the mixture or it will become too thick to spread.) Stir in walnuts and spread fudge in prepared pan. Cool fudge completely.