PREPARATION:

1. Wash and peel carrots. To make carrot crescents, cut carrots in half lengthwise. Place cut sides down. Cut carrots into 1/4-inch diagonal slices.
2. Place carrots and water in large saucepan; cover. Bring to a boil over high heat; reduce heat to medium-low. Simmer carrots about 8 minutes or until fork-tender.
3. Transfer carrots with slotted spoon to warm serving dish. Bring remaining liquid in saucepan to a boil until liquid is almost evaporated. Add honey and nutmeg; stir. Toss honey mixture with carrots to coat. Sprinkle with walnuts. Serve immediately.