1 c. sugar
1/2 c. butter
2 eggs
1 tsp. baking soda
1/2 tsp. cinnamon
1 1/2 c. flour
1/2 tsp. nutmeg
Dash of salt
1/2 c. nuts
3 med. apples (1 c. cooked)

Peel and slice apples. Boil in water until tender. Drain thoroughly. Mix sugar, butter and eggs. Sift dry ingredients together and gradually add to creamed mixture. Stir in apples and nuts. Put in ungreased 9 x 9 inch pan and bake 45 minutes at 350 degrees. (Can be doubled for 9 x 13 inch size.)

SAUCE:

1/2 c. butter
1/2 c. white sugar
1/2 c. brown sugar
1 c. cream or evaporated milk
2 tbsp. flour
1/2 tsp. vanilla

Combine all ingredients in saucepan over medium heat. Cook until mixture thickens. Serve warm over cake.