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Heat 1 Tbl. oil in a large frying pan and saute chicken until golden brown.
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Add half the onion and fry til softened, then add water.
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Bring to a boil, cover and reduce heat. Simmer 15 minutes.
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In another fry pan, heat remaining oil and fry the rest of the onion for 2-3 minutes, until soft. Add the chopped walnuts and fry for 2-3 more minutes, stirring frequently so the walnuts don't burn.
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Stir in pomegranate juice, tomato paste, lemon juice and sugar. Let simmer for 5 minutes, adding salt and pepper to taste. Pour sauce over chicken, ensuring all pieces are coated.
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Cover again and simmer for 30-35 minutes until the chicken is done and the oil from the nuts has risen to the surface.
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Serve at once with rice or a savory couscous.