Step 1: Preheat oven to 350 degrees F. Grease an 8-inch square baking pan.
Step 2: For cake; in a bowl, cream together 1 cup sugar with 1/4 cup soft butter. Beat in egg. Mix in grated apples.
Step 3: In another bowl, sift together the dry ingredients. Add to creamed mixture; mix well; stir in nuts. Bake for 30 minutes, or until the cake tests done.
Step 4: Melt 1/4 cup butter in a saucepan. Add the heavy cream and mix well until blended. Add in the sugar and 1 tablespoon flour to the butter/cream mixture; mixing thoroughly until thickened, over low heat. Mix in vanilla. Serve warm over the apple dessert.
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