1 c. sugar
1/4 c. butter or shortening
1 egg, well beaten
1 tsp. cinnamon
1 tsp. nutmeg
1 scant tsp. baking soda
1/4 tsp. salt
1/2 c. nuts, optional
3 med. raw apple, finely chopped, about 2 cups
1 c. flour

Mix ingredients. Bake at 350 degrees for 35 minutes.

SAUCE:

1/2 c. brown sugar
1/2 c. sugar
1/2 c. half and half cream or canned milk
1/4 c. butter
1 tsp. vanilla

Put all in saucepan, stir over medium heat until thickens, and pour warm over cooled cake.