In a large bowl whisk together the flour, salt and sugar and set aside.
In a medium sized bowl combine the warm water and the yeast. Stir and set aside for approximately 5 - 10 minutes. You will see bubbling on the surface indicating that your yeast is still active.
Slowly pour the yeast and water mixture into the bowl with the flour and use your hands to mix everything together. The dough will be very sticky. Mix just enough to ensure that there is no dry flour left in the bowl and that the dough is uniform; do not over mix. Cover with plastic wrap and cover with a clean towel. Set aside in a warm place for about 2 hours, until the dough has more than doubled in size.
When your dough is ready heat a good amount of vegetable oil in a deep but not too large pot. Your oil should be about 3 - 4 inches deep.
Use an oil thermometer to ensure that your oil reaches, but does not surpass, 325 degrees Fahrenheit.
Now you are ready to shape your loukoumades. Take a teaspoon and dip it into a small container filled with either vegetable oil or olive oil.
With your non-dominant hand grab a fist full of dough and squeeze some dough through the space created by your thumb and forefinger (also called first or index finger).
With your dominant hand use the teaspoon to cut off a piece of that dough and drop it into the hot oil. Repeat, dipping your spoon into the oil each time. Watch video here.
Do not overcrowd your pot; your loukoumades need space to cook as you stir them around with a slotted spoon and you also don't want to reduce your oil temperature too much by adding in too many loukoumades at a time.
Stir your loukoumades around with a slotted spoon for several minutes until they are golden brown all over.
When done, transfer to a paper towel lined plate or bowl and repeat until all the dough has been used.
When the loukoumades are all done, heat the honey in the microwave or a small pot until it is easy to pour. Pour over the loukoumades (use as much honey as you like) and then sprinkle them with ground cinnamon and chopped walnuts if desired.