Cream butter and sugar; add eggs, beat well. Add applesauce and baking soda. Sift dry ingredients together then add to creamed mixture. Add apples (finely chopped).
Bake at 350 degrees in a greased and floured cake pan for aporx. 1 hour or until done.
To make the Caramel Icing, you need 3/4 cup butter, 1 1/2 cups brown sugar, 1 1/2 cups white sugar, 3/4 cup of evaporated milk and 1 1/2 teaspoon vanilla extract....In Large cast iron skillet, bring sugars, milk and butter to a boil over high heat. Boil from 3 minutes or until the mixture is smooth. Remove from heat and por into a heat safe mixing bowl. Carefully beat with an electric mixer on high speed until icing reaches spreading consistency, about 15 mins. Stir in vanilla. Spread onto cooled cake immediately after mixing. Let sit for aprox. 10 mins before serving.