1/2 cup butter
2 cups granulated sugar
3 eggs
1/2 cup water
2 cup flour
1 1/2 cups chopped nuts
4 apples
2 teaspoons baking soda
1/2 teaspoon salt
1/2 teaspoon nutmeg
1/2 teaspoon cinnamon

Pare, core and finely chop apples and measure to 3 cups. Cream butter and sugar until fluffy; add eggs, one at a time, and beat until blended. Blend water in well.

Mix flour with baking soda, salt, nutmeg and cinnamon. Mix into the egg mixture, beating just until smooth. Stir in nutmeats and apples. Spread in a greased 13 x 9-inch baking dish. Bake at 325 degrees F for 45 minutes, or until cake springs back when touched. Cover with Rum Sauce.

Rum Sauce
1 cup granulated sugar
1/2 cup butter
1/2 cup half-and-half
1/4 cup rum or rum flavoring, to taste

Combine sugar, butter and half-and-half in the top part of a double boiler, and cook over simmering water for 10 minutes. Stir in rum, then pour, while hot, over cake.