1. Cream Cheese frosting Preheat oven to 350F.

2. Line bottoms of two 8 inch round cake pans with waxed paper.

3. Grease and flour pans.

4. Combine flour, baking powder,cinnamon, baking soda, salt and nutmeg in medium sized bowl.

5. Set aside.

6. Mix sugars together in large bowl, breaking up any lumps.

7. Whisk in eggs, then oil, until blended.

8. Stir in sauerkraut, apple and nuts.

9. Add flour mixture and stir just until moistened.

10. Spoon into prepared cake pans.

11. Bake about 35 minutes, or until wooden pick inserted in center comes out clean and cake begins to pull away from sides of pan. Let cool 10 minutes, then invert cakes onto wire racks to cool completely.

12. Spread with cream cheese frosting.

13. ** %%%%% CREAM CHEESE FROSTING %%%%% ** 16 oz cream cheese, softened 1 cup confectioner's sugar 3 1/2 tbsp heavy cream 2 tbsp grated orange zest (peel) 1 tsp cinnamon 2 tsp vanilla Whip cream cheese, slowly adding sugar, until fluffy.

14. Add orange rind,cinnamon and vanilla.

15. Mix well.

16. Makes about 2-1/4 cups.

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