In a medium saucepan add water, sugar, cocoa powder and butter. Simmer and stir on low heat until sugar dissolves and butter is melted.
Take off the heat and stir in vanilla extract and walnuts.
Let cool for a few minutes, then mix in powdered milk one cup at a time. Mix well.
Refrigirate this mixture for about 60 minutes. The mixture will harden.
Remove from fridge. Use a tablespoon to scoop out little balls. Mold them into pyramids and roll in crushed creme wafers. Put in mini cupcake paper cups (optional). Store in the fridge. Candy is better the next day, once it sat in the fridge overnight.
*Note: This will be very easy to mold into any desired shape. Makes about 60 candies, so can be cut in half.