Lady Rizo made her European debut at this year's Edinburgh Fringe, performing daily at Assembly George Square.
Lady Rizo receives the inaugaral Time Out & Soho Theatre cabaret award.
On presenting the award, Walters said "I'm confident that Time Out readers who respond to the cabaret artists we have been championing for many years will find Lady Rizo sensational", with McDaniel adding "I could clearly see a cabaret star in the making. She deserves to be spoken of in the same breath as Camille O'Sullivan and Meow Meow."
Ben Walters, Lady Rizo, Steve Lock and Frodo McDaniel at the award presentation.
Other shows shortlisted for the award include Dusty Limits: Post-Mortem; EastEnd Cabaret: Notoriously Kinky; An Hour Long Sinister Wink, Creative Martyrs, Piff the Magic Dragon in...Jurassic Bark and An Audience with Tomas Ford.