Preheat oven to 350 degrees F.
In a large bowl, combine sugar, applesauce, and diced apples. Mix in eggs and nuts.
In another bowl, sift together flour, baking soda, salt, cinnamon and nutmeg. Add to apple/egg mixture and stir until combined.
Pour into a bundt cake pan. Sprinkle lightly with additional sugar if desired.
Bake for 1 hour.