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1
Sift flour, baking powder and salt onto waxed paper;stir in chopped walnuts.
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2
Lightly grease an 8x8x2 3/4 or springform pan.
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3
Beat eggs in a medium size bowl with electric mixer at high speed until frothy.
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4
Beat in sugar gradually and continue beating at high speed until mixture is very thick and creamy, at least 5 minutes.
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5
Stir water and vanilla into egg mixture.
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6
Gently fold in flour mixture.
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7
Pour batter into prepared pan.
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8
Bake at 350F (180C) F for 35 minutes or until center springs back when lightly touched with fingertip.
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9
Cool in pan on wire rack 5 minutes.
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10
Loosen cake around sides; release and remove ring; loosen from bottom; remove from pan.
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11
Cool completely.
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12
Cut cake into 3 thin layers.
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13
Drain peaches; reserve syrup.
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14
Combine 3 tablespoons of the syrup with the sherry in a small bowl.
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15
Reserve 8 peach slices; chop remainder and add to sherry mixture.
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16
Beat cream in a medium size bowl until stiff.
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17
Put bottom cake layer on serving plate.
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18
Spoon half the sherry-peach mixture over layer; spread with 1 cup of the cream.
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19
Repeat with second layer; top with remaining layer.
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20
Spread a layer of whipped cream over top layer.
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21
Put remaining cream in a pastry bag fitted with a star top.
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22
Pip out swirls on top, then garnish with reserved peach slices and walnuts.
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23
Chill until ready to serve.
