Preheat the oven to 350℉ and line baking sheets with parchment paper.
To a large mixing bowl, add sugar, water, eggs and vegetable oil. Stir well to combine.
Add cocoa powder, flour, cinnamon, cloves, orange peel, baking powder. Stir again, just until combined. Avoid over mixing, which can cause cookies to be dry.Stir in walnuts until combined
Portion dough into tablespoon-sized balls. Arrange 1 inch apart on lined baking sheets.
Bake in preheated oven for 10 minutes. Important: Allow cookies to cool completely before dipping in chocolate icing.
Icing the Cookies
When ready to frost, add cocoa, confectioners sugar, milk and vanilla to a small bowl. Stir well to combine.
Dip the top of the cookies into the chocolate mixture and place on a cooling rack so the excess frosting drips off.
Let the cookies cool at room temp for at least 2 hours, until the icing hardens.
Notes
It's important to allow the cookies to cool completely before dipping them in chocolate.
It takes about 2 hours for the chocolate coating to set up. You can speed up the process by chilling the chocolate covered cookies in the fridge.
Store cookies in a covered container at room temperature for up to 5 days, or refrigerate for up to a week.Italian chocolate cookies can be frozen for up to 3 months. However, it's best to freeze them without chocolate coating. When you're ready, allow them to thaw in a covered container at room temperature. When they are completely thaw, then dip them in the chocolate icing.