1. Preheat oven to 350 degrees. Butter the bottoms and sides of 2 9x9 inch pans.
2. In a bowl toss the walnuts with the cinnamon and set aside. Unroll phyllo dough. Cut the stacks so that they fit the pans. Cover phyllo with a dampened cloth to keep it from drying out as you work. Place two sheets of dough in pan, butter thoroughly. Repeat until you have 8 sheets layered. Sprinkle the top with the nut mixture. Top with two sheets of dough, butter, nuts, layering as you go. The top layer should be 6-8 sheets deep. Repeat in the other pan.
3. Using a sharp knife cut into rectangular shapes all the way to the bottom of the pan. You can make about 12 pieces per pan. Bake for about 50 minutes until baklava is golden and crisp.
4. Make the syrup while the baklava is baking. Boil the sugar and water until sugar is melted. Add vanilla and honey. Simmer for about 20 minutes.
5. Remove baklava from oven and immediately pour the syrup over it. Let cool and serve.
Note: Leave uncovered or it will get soggy.