Sift dry ingredients into large mixing bowl. Add shortening and water; beat 1 minute with electric mixer. Add apple sauce and egg; beat 3 minutes. Stir in nuts.
Pour into greased and floured 13x9 inch baking pan. Bake at 350 degrees for 35 to 40 minutes. Cool. Frost
Browned Butter Frosting
Heat 3 Tbsp. margarine (or butter) over medium heat until delicate brown; remove from heat. Beat in 1 1/2 c. powdered sugar and 1 tsp. milk until smooth and of spreading consistency.