In a large bowl, combine the first seven ingredients.
Combine the eggs, pumpkin, oil, honey and water. Stir into dry ingredients just until combined; fold in walnuts and chocolate chips.
Fill greased or foil-lined muffin cups three-fourths full.
Bake at 350° for 20-25 minutes or until a toothpick inserted near the center comes out clean. Cool for 10 minutes before removing from pans to wire racks to cool completely.
For frosting, in a small bowl, beat the cream cheese, butter and vanilla until fluffy. Gradually beat in confectioners' sugar until smooth. Frost cupcakes.