1. Grease an 8 x 8 x 2-inch baking pan. 2. Place sugar and applesauce in a medium saucepan. 3. Over medium heat bring to a boil and boil for 2 minutes. 4. Stir in gelatin until dissolved; remove from heat. Stir in nuts. 5. Pour into baking pan. 6. Cover lightly and let stand at room temperature for 24 hours. 7. Cut into 1-inch squares. 8. Roll in powdered sugar. 9. Let stand for 24 hours and roll in powdered sugar again.
