Multidimensional quantum walks can exhibit highly nontrivial topological structure, providing a powerful tool for simulating quantum information and transport systems. We present a flexible implementation of a two-dimensional (2D) optical quantum walk on a lattice, demonstrating a scalable quantum walk on a nontrivial graph structure. We realized a coherent quantum walk over 12 steps and 169 positions by using an optical fiber network. With our broad spectrum of quantum coins, we were able to simulate the creation of entanglement in bipartite systems with conditioned interactions. Introducing dynamic control allowed for the investigation of effects such as strong nonlinearities or two-particle scattering. Our results illustrate the potential of quantum walks as a route for simulating and understanding complex quantum systems.