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Preheat the oven to 350 degrees F (175 degrees C). Grease and flour a 10x15-inch jelly roll pan.
Make cake: Combine flour, sugar, baking soda, and salt in a mixing bowl. Beat in sour cream and eggs.
Melt butter in a saucepan over low heat. Stir in water and cocoa powder. Bring mixture to a boil then remove from the heat. Allow to cool slightly, then stir cocoa mixture into the flour and egg mixture until blended. Pour batter into the prepared pan.
Bake in the preheated oven until a toothpick inserted into the center comes out clean, about 20 minutes.
While the cake is baking, make icing: Combine milk, cocoa powder, and butter in a large saucepan over medium heat. Bring to a boil, then remove from heat. Stir in confectioners' sugar and vanilla, then fold in walnuts, mixing until blended.
Spread icing over warm cake.