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Step 1
Place the basil leaves and garlic in a food processor or blender, and mix well. Add the walnuts, and continue to blend until the nuts are finely ground.
Step 2
Keep the machine running as you drizzle in the olive oil. When you have a smooth paste, transfer to a bowl, and stir in the parmesan. Season to taste with salt and pepper.
Step 3
If you are not going to use the pesto right away, place in a container that has a tight-fitting lid. Smooth out the top surface of the pesto, and pour on enough olive oil to cover it completely. This creates an air-proof seal that helps preserve it well. Cover tightly and store in the refrigerator.