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PREPARATION:
Preheat oven to 350º. Put 2 cups of applesauce into a bowl and pour 3 cups of hot water over the applesauce. Let sit for 5-10 minutes until the water is absorbed. Stir the mixture and measure 2 cups of applesauce to use in the cake. Set aside. Note: there will be some applesauce left over. Cream the butter and sugar together until fluffy. Add vanilla, then eggs one at a time; mix thoroughly. In a separate bowl sift dry ingredients together and add alternately with the 2 cups of prepared applesauce to creamed mixture; beating thoroughly after each addition. Fold in the nuts. Pour batter into a greased and floured bunt pan. Bake until a toothpick inserted in the center comes out clean, about 40 to 45 minutes. Let cake cool in the pan. Turn the pan up side down and let the cake slowly pull away from pan. Spread cream cheese glaze on cake using a pastry brush. If glaze is not desired, sprinkle the cake with powdered sugar
GLAZE DIRECTIONS: Beat together cream cheese, butter, and vanilla until light and fluffy. Gradually beat in powdered sugar to make a thin spreadable consistency. This glaze should be slightly runny as it will be spread on the cake using a pastry brush.