Step 1: Preheat oven to 350 degrees F. Line an 8- x 8-inch baking pan with parchment.
Step 2: Place the oats in a blender or food processor and blend until they look like flour; place in a medium bowl. Add brown sugar, baking soda, baking powder, cinnamon, nutmeg, and salt. Mix well.
Step 3: In a smaller bowl, stir together applesauce, oil, egg, and vanilla. Add to the dry ingredients and mix until thoroughly combined. Stir in walnuts. Pour into the prepared baking dish.
Step 4: Bake for 25 to 30 minutes, or until a toothpick inserted in center comes out dry. Let cool, then sprinkle with confectioners' sugar if desired.
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