In a medium saucepan, combine the dried apricots and water. Bring to a boil over medium heat, then reduce the heat and simmer for about 15 minutes, or until the apricots are plump and tender. Remove from heat and let cool slightly.
In a separate bowl, mix together the chopped walnuts, raisins, cinnamon, and nutmeg.
Carefully open each apricot and stuff with the walnut mixture.
In the same saucepan used for the apricots, combine the sugar, vanilla extract, lemon juice, and honey. Stir until the sugar dissolves.
Return the stuffed apricots to the saucepan and simmer gently for an additional 10 minutes, allowing the flavors to meld.
Remove from heat and let cool before serving.