Heat oil in a saucepan over medium-high heat. Add onion and cook until soft, about 3 minutes. Stir in garlic, thyme, parsley, paprika, and lentils to coat.
Add water and bring to boil over medium heat. Reduce heat to simmer and cover the pot. Cook until lentils are tender and water has completely evaporated about 30 minutes. (Make sure lentils are dry and not soggy)
Transfer lentil mixture to a large bowl and set aside. Using a food processor, process/pulse walnuts until finely chopped. Stir walnuts into lentils along with the *oat flour, flaxseeds, yeast flakes, Bragg's Liquid Aminos and salt.
Preheat oven 400 degrees F. Prepare baking sheet with lightly greased parchment paper.
Scoop mixture, using about 1-2 tablespoons. Form into balls and placing them on prepared sheets in a single layer until mixture is all gone. Bake for 30 minutes or until brown and crispy on the outside.
To Prepare Cashew Gravy
Combine cashews, water, yeast flakes, onion powder, garlic, arrowroot, Bragg's Liquid Aminos in a high-speed blender and process until smooth.
Pour sauce into a saucepan and add thyme, Italian seasonings, paprika. Heat on medium-high, stirring constantly with a wire whisk until sauce thickens.
Place meat balls in serving plate. Pour gravy on top and garnish with chopped parsley.