Mix the gelatin with the 1/2 Cup Cold Applesauce.
In a saucepan, combine the 3/4 Cup Applesauce with the 2 Cups of Sugar and boil for 10 minutes.
Add the gelatin mixture and simmer 15 minutes longer, stirring constantly.
Remove from heat, add the nuts and vanilla.
Pour into a buttered 9-inch square pan. Refrigerate 4 hours or overnight. Cut into 1-inch squares and roll in powdered sugar to coat.