2/3 c. oil
1/2 c. nuts, chopped
1 c. sugar
3 c. grated apple, peeled
1 tsp. baking soda
1 egg
1 c. flour, all-purpose
1/2 tsp. salt
1 tsp. ground cinnamon
1/2 tsp. ground nutmeg

Mix above ingredients until well blended. Preheat oven to 350 degrees. Pour batter into 8 x 8 x 2 inch greased pan. Bake for 25 minutes.

SAUCE:

1/2 c. butter
1 c. sugar
1/2 c. evaporated milk
1 1/2 tsp. vanilla

Cook sauce ingredients 10 to 15 minutes on low heat with occasional stirring. Do not bring to a boil. Sauce can simmer 30 minutes. Spoon over warm cake.