2 c. unpeeled apples, chopped
1 c. sugar
1 tsp. baking soda
1/2 tsp. salt
1 beaten egg
1 1/2 c. sifted flour
1/2 c. cooking oil
1 tsp. vanilla
1/2 c. nuts
1 c. flaked coconut

Mix apples and sugar. Let stand until juice forms. Sift flour, soda and salt together. Add apples and remaining ingredients, mix thoroughly. Pour into greased floured 8-inch square pan. Bake at 350 degrees for 40-45 minutes. Frost with caramel frosting while cake is still warm.

CARAMEL FROSTING:

1/3 c. butter, melted
1/4 c. milk
1 c. brown sugar, firmly packed
2 1/2 c. powdered sugar
1/2 tsp. vanilla
Dash of salt

Combine melted butter and brown sugar. Sift and add powdered sugar alternately with the milk. Beat until smooth. If frosting is too thick, add a little milk, add vanilla. Spread on warm cake.