In 1942, Nowotny increased his tally of victories and claimed his 30th and 31st kills on 11 July over the Volkhov bridgehead during the Battle of Lyuban, which earned him the Honor Goblet of the Luftwaffe () on 14 July 1942. Nowotny shot down a further five aircraft on a single day (32nd – 36th victories), known as an "ace in a day", on 20 July and repeated the designation with seven (48th – 54th victories) on 2 August. After having downed three enemy aircraft on 11 August, "Leutnant" Nowotny carried out three victory passes over the airfield, despite having sustained combat damage to his own Bf 109 "Black 1". In the subsequent landing, his aircraft somersaulted and he sustained moderate injuries. Walter Nowotny was awarded the Knight's Cross of the Iron Cross () on 4 September, after 56 aerial victories. The Knight's Cross earned him a home leave to Vienna. Here, the brothers Hubert and Walter met for the last time before Hubert was killed at Stalingrad. "Leutnant" Nowotny was made "Staffelkapitän" of 1./JG 54 on 25 October, replacing "Oberleutnant" Heinz Lange.