Amish Apple Cake

1/2 cup chopped pecans
2 1/2 cups finely chopped apples, such as Granny Smith
1/2 cup butter, softened
1 cup granulated sugar
1 egg
1 teaspoon baking soda
1/4 teaspoon salt
1 teaspoon cinnamon
1/2 teaspoon nutmeg
1/2 teaspoon vanilla extract
1 cup all-purpose flour

Hot Caramel Sauce
1/2 cup butter
1 cup brown sugar
1/2 teaspoon salt
1 teaspoon vanilla extract
1/2 cup evaporated milk

Preheat oven to 350 degrees F. Oil a 9-inch round cake pan.

In a large bowl, cream the butter. Add the sugar and beat until fluffy. Add the egg and beat until well blended. Mix in the baking soda, salt, cinnamon and nutmeg. Add the flour and stir just until blended. Stir in the apples and nuts. Pour into prepared cake pan and bake for 30 minutes until the top springs back when touched lightly with your finger.

Hot Caramel Sauce: In a saucepan, melt the butter, brown sugar and salt. Bring to a boil. Remove from heat and whisk in vanilla extract and milk.

Serve warm sauce over cake.