Soak gelatin in the 1/2 c. unsweetened applesauce for 10 minutes.
In a med. saucepan bring to a boil the 2 c. sugar & 3/4 c. applesauce
Add gelatin mixture & boil 15 minutes, stirring constantly while cooking.
Remove from heat & add vanilla & nuts; stir well.
Pour into a greased 8 x 8-inch pan. Let stand on counter overnight.
When candy is not sticky & can be handled easily, cut in squares.
Roll in confectioner's sugar. This recipe may be doubled.
Do not refrigerate as it makes the candy sticky.
Store in a non-airtight container.