1 c. sugar
1/4 c. butter
1 egg
1/4 tsp. salt
1/2 tsp. cinnamon
1/2 tsp. nutmeg
1 tsp. baking soda
1 c. flour
2 tbsp. hot water
2 1/2 c. diced apples
1/2 c. nuts
1 tsp. vanilla

Cream together sugar and butter. Add remaining ingredients. Bake at 350 degrees for 45 minutes.

SAUCE:

1/2 c. butter
3/4 c. light cream (half & half)
1 c. white sugar

Bring to a boil and simmer for 5 minutes. Serve warm on cake.