Place a colander in a 2-quart glass measure or medium bowl. Line colander with 4 layers of cheesecloth, allowing cheesecloth to extend over outside edges of bowl. Spoon yogurt into colander, and cover loosely with plastic wrap; refrigerate yogurt 12 hours. Spoon yogurt cheese into bowl, and discard liquid.
Stir in minced garlic, chopped walnuts, salt, pepper, and hot sauce, and let mixture stand 15 minutes.