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Preheat oven to 350℉.
Grease a 9-inch by 5-inch loaf pan and set aside.
Stir together the sugar, applesauce, vegetable oil, eggs, and milk in a medium mixing bowl.
In a medium mixing bowl, sift the flour, baking soda, baking powder, salt, cinnamon, and nutmeg.
Pour the applesauce mixture into the dry mixture. Stir just until blended.
Stir in the nuts.
Pour the batter into the greased loaf pan.
Bake at 350℉ for 50 minutes or until a toothpick inserted into the center comes out clean.
Cool on a wire rack.