CARAMEL APPLE CAKE

1/2 cup chopped walnuts

1/3 cup packed brown sugar

1 cup flaked coconut

2-1/2 cups all-purpose flour

1-1/2 cups sugar

1-1/2 teaspoons baking soda

1 teaspoon salt

1/2 teaspoon baking powder

1/4 teaspoon ground cinnamon

2 eggs

1/2 cup evaporated milk

1/3 cup water

2 cups finely shredded peeled apples

1/3 cup packed brown sugar

1/4 cup evaporated milk

2 tablespoons butter or margarine

Combine walnuts, brown sugar and coconut; set aside. In a mixing bowl, combine the next six ingredients. In a small bowl, combine eggs, milk, water and apples; add to flour mixture. Mix well.

Pour into a greased 13-in. x9-in. x 2-in. baking pan. Sprinkle with nut mixture. Bake at 325 F for 45-50 minutes or until a wooden pick inserted near the center comes out clean.

Meanwhile, in a heavy saucepan, combine the topping ingredients; cook over medium heat, stirring constantly, until the sugar is dissolved and the mixture has thickened slightly, about 8 minutes.

Poke holes with a fork in top of the hot cake; immediately spoon topping over cake. Cool completely on a wire rack. Yield: 12-15 servings.