Preheat oven to 350°. Peel, core and chop apples to make 1 1/2 cups. Pieces should be about the size of your thumbnail. In a large mixer bowl, cream one stick butter. Add the sugar and beat until fluffy. Add egg and beat until blended, then mix in the baking soda, 1/4 teaspoon salt, cinnamon and nutmeg. Add the flour and stir until just blended. Stir in apples and nuts. Turn mixture into a greased 9-inch round cake pan or an 8-inch square pan. Bake for 45 to 55 minutes, or until the top springs back when touched lightly in the center with your finger. To serve, ladle 2 to 3 tablespoons warm Caramel Sauce onto service plates. Cut cake into 8 wedges and place on top of sauce. Garnish with a dollop of whipped cream.

For Hot Caramel Sauce: In a saucepan, melt one stick butter with brown sugar and 1/2 teaspoon salt. Bring to a boil, stirring with a whisk. Remove from heat and whisk in the vanilla and evaporated milk. The sauce will be thin but it thickens as it sits. Warm the sauce slightly before serving.