1 c. sugar
1 egg, beaten
1/4 c. melted butter
1 c. flour
1 tsp. baking soda
1/4 tsp. cinnamon
1/4 tsp. nutmeg
2 c. diced apples
1/4 c. nuts

Cream together sugar, egg and butter. Add flour, soda, cinnamon and nutmeg. Mix well. Stir in apples and nuts. Bake 45 minutes at 350 degrees.

SAUCE:

3/4 c. sugar
2 tbsp. corn starch
1/4 tsp. salt
1 c. water
2 tbsp. butter
1/4 tsp. vanilla

Mix sugar and corn starch together. Add water, salt, butter and vanilla. Cook slowly until thick. Serve hot over cake.