Apple Cake with Caramel Sauce

1 cup sugar
1/4 c. shortening
1 egg
1 cup flour
1 t. soda
1/2 t. salt
1/2 t. cinnamon
1/2 t. nutmeg
3 medium apples, grated with skins
1/2 c. nuts chopped

Cream sugar and shortening.  Add egg and mix.  Mix in all the dry ingredients.  Batter will be stiff. Add in nuts and apples.  Spread into a greased 8 inch square pan and bake at 350 for 35-40 min or until a toothpick comes out clean.  Serve with caramel sauce.

Caramel Sauce:
1 cup sugar
1/2 c. cream or canned milk
1 cube butter

Mix in pan and cook over medium-high heat, stirring constantly.  Boil long enough for the mixture to become sticky (about 10 minutes). Serve over cake.