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Preheat your oven to 180°C (Fan 160°C or Gas Mark 4). Grease a 30 x 23cm (12 x 9in) traybake or roasting pan, then line the base with non-stick baking paper.
In a large mixing bowl, combine all the ingredients for the sponge. Use an electric hand whisk to beat the mixture until fully combined and smooth.
Pour the batter into the prepared pan, spreading it out evenly. Bake in the oven for 35–40 minutes, or until the cake pulls away from the sides of the pan and springs back when lightly pressed in the center.
Allow the cake to cool in the tin, then remove it and peel off the baking paper.
For the icing, beat together the softened butter, sifted icing sugar, milk, and coffee until smooth.
Spread it evenly over the cooled cake using a palette knife, then top with the chopped walnuts.