Preheat oven to 350 degrees F (175 degrees C). Grease a 8x8-inch baking pan.
Cut phyllo dough to size of pan, and place half the sheets in the bottom of the pan. Grind walnuts with 1/2 cup sugar and cinnamon in food processor or blender. Spread ground walnut mixture evenly over phyllo. Place remaining phyllo sheets on top of walnut mixture.
Melt butter in measuring cup in microwave. Slowly pour mixture over top layer of phyllo. Cut baklava into diamond shapes with a sharp knife.
To make syrup: Combine all ingredient in large saucepan over medium-high heat. Bring to a light boil and simmer for 20 minutes. Let cool before pouring over pastry.
Bake 30 minutes in center of oven, or until golden brown. Pour syrup over hot pastry. Let cool before serving.