Combine softened cream cheese, lemon juice, water, sugar, salt, celery seeds and red pepper in blender or food processor. Process until smooth and creamy. Yield: about 1 ½ cups dressing, Toasted walnuts in sauté pan over medium-high heat. Set aside.
Combine apples with about 1 cup of the dressing to thoroughly coat the apple pieces.
Stir in celery and grapes adding more dressing to taste.
Stir in toasted walnuts shortly before serving.