A response i had to simialr thread:
cp_egypt uses fire on the torches. I had to take a look how they were made on there to make them myself.
The wall torches consist of the wall torch prop, and orange light entity, a trigger_hurt, an info_particle_system with the particle name burning_torch and an env_sprite with orange colour and sprite name of materials/Sprites/light_glow03.vmt
This does make a small flame but you might be able to increase the size somehow. Anyway hope that helps.