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Bring a medium pot of water to a boil.
Place spinach, walnuts, Parmesan cheese, garlic, lemon juice, and crushed red pepper in a food processor; process until finely chopped. With the processor on, slowly add olive oil. Add warm water; process until blended. Season with salt and pepper to taste.
Add gnocchi to boiling water and cook the gnocchi according to package instructions. Drain completely. In a large skillet, heat olive oil over medium-high heat. Add the gnocchi in a single layer and cook, undisturbed, until golden and crisp, about 3-4 minutes. Turn the gnocchi and cook, turning occasionally, until golden and crisp, about 3 more minutes. Remove from the heat and stir in 1/4 to 1/3 cup of the pesto. You might have leftover pesto. Serve warm and garnish with Parmesan cheese, if desired.