Apple Cake and Butter Sauce

My friend found this in a Taste of Home magazine and served it at a baby shower.  This stuff is heavenly. 

INGREDIENTS
Cake:
1/2 cup butter, softened
2 cups sugar
2 eggs
1 teaspoon vanilla extract
2 cups all-purpose flour
2 teaspoons baking soda
2 teaspoons ground cinnamon
1/4 teaspoon salt
1 1/2 teaspoon ground nutmeg
4 large Granny apples, peeled and grated

Butter Sauce:
1/2 cup butter
1/2 cup sugar
1/2 cup packed brown sugar
1/2 cup half-and-half or cream
1/2 tsp vanilla (optional)

DIRECTIONS
1. In a large bowl, cream butter and sugar. Beat in egg and vanilla. Combine the flour, baking soda, cinnamon, salt and nutmeg; gradually add to the creamed mixture. Stir in apples.

2. Pour into a greased 13x9-in. square baking dish. Bake at 350° for 40-45 minutes or until a toothpick inserted near the center comes out clean.

3. Meanwhile, in a saucepan, melt butter. Stir in sugars and cream. Bring to a boil over medium heat, stirring constantly. reduce heat. Simmer, uncovered, for 15 minutes, stirring occasionally. Serve over warm cake.