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Preheat oven to 350°F. Coat a 8x8-inch baking pan with cooking spray. Cream together shortening and 3/4 cup sugar in a large bowl. Add 1 egg; beat thoroughly. Whisk together flour, baking powder and salt in a medium bowl. Add dry ingredients alternating with milk to the shortening mixture. Spread half of the mixture into the prepared baking pan. Combine the egg white with water in a small bowl and brush 1/2 the egg-water mixture over batter in the pan.
Combine cinnamon, melted butter and walnuts in a small bowl, sprinkle half the mixture over the egg-water mixture. Cover with remaining batter, remaining egg-water mixture and cinnamon mixutre. Bake until a wooden toothpick inserted near the center comes out clean, about 30 to 35 minutes. Top with additional walnuts, if desired.