Grease and flour a loaf pan.
Mix together the applesauce, carrots, corn oil, vanilla, eggs and 3/4 cup sugar.
In a separate bowl, mix together the flour, baking powder, baking soda, salt, 1 teaspoon cinnamon, nutmeg and walnuts.
Add the dry mixture to the applesauce mixture and mix just until blended. Pour into loaf pan.
Mix the 1 tablespoon sugar and 1/2 teaspoon cinnamon together and sprinkle on top of the batter.
Bake one hour at 325 degrees.
Center should be cooked through.
Remove from pan and cool on rack.