Preheat oven to 350°F (175°C). Grease a 9×13-inch baking pan.

In a large bowl, combine applesauce, brown sugar, oil, eggs, and vanilla extract (alcohol-free). Beat until smooth.

In a separate bowl, whisk together flour, baking soda, baking powder, cinnamon, and nutmeg.

Gradually fold dry ingredients into wet ingredients until fully combined.

Pour batter into prepared pan and spread evenly.

Bake for 30–35 minutes or until a toothpick inserted in the center comes out clean. Let the cake cool completely.

In a medium bowl, beat cream cheese and butter until smooth. Gradually add powdered sugar and cinnamon, beating until fluffy.

Spread frosting evenly over the cooled cake. Optionally, sprinkle extra cinnamon or chopped walnuts.

Slice into squares and serve at room temperature or slightly chilled.