Place pine nuts, garlic, parsley, salt and pepper in a food processor and blend to form a smooth paste.
With the motor running, add the olive oil, water, and lemon juice to form a smooth sauce. Pour into a serving bowl and set aside.
Zucchini Fritters:
Cut zucchini on the diagonal, about 1/4" thick.
Place flour and paprika in a large zipper bag and mix together.
Beat the egg and milk together in a small bowl.
Add the zucchini slices to the flour mixture and toss together until well coated.
Heat 1/2" of oil in a large skillet. Dip the zucchini slices into the egg mixture, one at a time, then slip them into the heated oil. Cook zucchini in small batches for about 2 minutes until they are crisp and golden brown.
Remove zucchini fritters with a slotted spoon, and drain on paper towels.