2 c. diced, peeled apples
1 egg
1 tsp. cinnamon
1/2 c. chopped nuts
1 c. sugar
1 c. sifted flour
1 tsp. baking soda
1/2 tsp. salt
1/4 c. oil

SAUCE:

1/2 c. sugar
1/2 c. brown sugar, packed
2 tbsp. flour
1 c. water
1/2 stick butter
1 tsp. vanilla

Mix sugar with apples. Let stand until sugar dissolves. Add egg, beaten. Add dry ingredients and nuts. Pour into 8x8 inch pan. Bake at 375 degrees for 40 minutes.

SAUCE: Cook sugar, flour and water until clear. Add butter and vanilla. Pour over cake while both are hot.