1. Over high heat, boil water. Add walnuts and boil again. Cook for 1 min. Rinse walnuts under running hot water, drain. Gently stir warm walnuts with sugar until sugar is dissolved. If necessary, let mixture stand 5 min to dissolve sugar.
2. Meanwhile, heat 1" salad oil in 4-qt saucepan over medium heat to 350°F. With slotted spoon, add about 1/2 of walnuts to oil. Fry 5 min or until golden, stir often.
3. Place walnuts in coarse sieve to drain; sprinkle VERY lightly with salt; toss lightly to keep walnuts from sticking together. Transfer to paper towels to cool. Fry remaining walnuts. Store in tightly covered container.