Butter a 7 inch round cake pan and dust well with flour. Line bottom with parchment (optional )
Remove the peels of the apple. Grate one apple and chop the other into tiny pieces
Heat the grated apple with the sugar in a pan over medium heat. Once the sugar dissolves , continue heating for 5-6 minutes stirring occasionally until there is a thick chunky sauce. Let cool.
Sift together the flour, baking powder, baking soda and salt 5-6 times .
In another bowl, mix together all the liquids - apple sauce, oil, water and milk.
Add the liquid mixture to the dry mixture and whisk until smooth.
Fold in the chopped apple.
Pour batter into the prepared pan
Bake at 180 C / 350 F for 40-42 minutes until a toothpick inserted in the centre comes out dry and the cake springs back on pressing gently.
Let cool in pan for 5 minutes . Unmould and cool completely on wire rack
Notes
This cake lasts well for 3 days at room temperature. I used Royal Gala apples, you can use any red apples