1/2 c. butter
1 c. sugar
2 eggs
1 c. sweetened applesauce
1 tsp. baking powder
1/2 tsp. baking soda
1 3/4 c. flour
1/2 tsp. cinnamon
1/2 tsp. nutmeg
1/2 c. nuts (optional)

Cream butter and sugar. Add eggs and beat well. Add dry ingredients alternately with applesauce. Stir in nuts. Bake at 350 degrees for 1 hour in a buttered pan.

FROSTING:

1/2 c. powdered sugar
1/2 tsp. vanilla
1 tbsp. water

Cream together and pour over bread.