Place a medium saucepan over medium heat. Place the sugar, water, lemon skin and fruit in the pan. Bring the mixture to simmer. Place the figs in the pan and lower the heat to a very low simmer.
Poach the figs for 1 1/2 - 2 hours until the poaching liquid has reduced and the figs are thick and similar to marmalade. Add the walnuts and turn off the heat. Allow the mixture to sit for 1 hour.
Remove the figs and store covered in the refrigerator for up to 2 weeks or freeze for 3 months. Reserve the poaching liquid for vinaigrettes, wine reductions or topping frozen desserts.