Dissolve espresso powder in boiling water. Set aside to cool completely.
Preheat oven to 180°C / 160°C fan / Gas 4. Grease and line two 20cm sandwich tins.
Add butter, caster sugar, eggs, flour, baking powder, and cooled coffee liquid to a large bowl. Beat with an electric whisk for 2–3 minutes until smooth and pale.
Fold in chopped walnut pieces.
Divide equally between tins. Bake 25–30 minutes until golden and a skewer comes out clean.
Cool in tins 10 minutes, then turn out onto a wire rack. Cool completely.
Beat softened butter alone for 3–4 minutes until very pale. Add icing sugar in two batches. Add cooled coffee liquid. Beat until smooth. Add a splash of milk if needed.
Sandwich sponges with half the buttercream. Spread remainder on top. Decorate with walnut halves.