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 sugar
1 egg
1 teaspoon baking soda
1/4 teaspoon salt
1 teaspoon cinnamon
1/2 teaspoon nutmeg
1/2 teaspoon vanilla
1 cup all purpose flour

HOT CARAMEL SAUCE
1/2 cup butter
1 cup brown sugar
1/2 teaspoon salt
1 teaspoon vanilla
1/2 cup evaporated milk

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 soda, salt, cinnamon and nutmeg. Add the flour and stir just until blended. Stir in the apples and nuts. Pour into an oiled 9" round cake pan and bake in a preheated 350 degree oven for 30 minutes until the top springs back when touched lightly with your finger. Serve with Hot Caramel Sauce. In a saucepan, melt the butter, brown sugar and salt. Bring to a boil. Remove from heat and whisk in vanilla and milk. Serve warm sauce over cake.
Serves 8