3 tbsp. butter
1 cup sugar
1 egg
3 cups diced apples
1 cup all-purpose flour
1 tsp. baking soda
1/2 tsp. cinnamon
1/2 tsp. nutmeg
1/4 tsp. salt
1/2 cup chopped nuts
1 tsp. vanilla

Preheat oven to 350°F.

Mix together butter, sugar and egg. Add remaining ingredients. Pour into 8x8-inch pan.

Bake at 350°F for 40 to 45 minutes.

SAUCE:

3 tbsp. butter
1 cup sugar
1 cup milk
2 tbsp. all-purpose flour
1/2 tsp. nutmeg
1 tsp. vanilla

Cream together butter and sugar. Add milk and flour. Cook over low heat until mixture coats spoon, then add nutmeg and vanilla. Serve warm over cake.

Variation: Instead of sauce, top cake with whipped cream or ice cream.

Submitted by: Mary Harrell