1. Preheat the oven to 350 degrees Fahrenheit.
2. In a small pan or in the microwave, melt all but two tablespoons of the butter or margarine. Let it cool enough to handle.
3. Dice the apples. In a pan over medium heat, add the remaining two tablespoons of butter, then the apples, cinnamon, honey, sugar, and the water and stir very well. Cover and wait for the apples to become soft. Once soft, shut off the heat and leave the apples covered until ready to use.
4. In a bowl, cut the kataifi into small pieces with scissors or your hands. Add the melted butter and use your hands to coat all the kataifi pieces with it.
5. In a muffin pan, add the kataifi. Pat the kataifi into the walls of the muffin wells, leaving a well inside each kataifi cup. Add two tablespoons of cooked apples to the top of each nest and top with crushed walnuts.
6. Bake until they are golden brown, approximately 30 minutes.
7. Perfect for your Rosh Hashanah table!