Pre-heat the oven to 350 degrees. Spray 2 (8x4x2 inch) loaf pans with cooking spray.
Toast walnuts in an ungreased skillet pan. Stir while heating on medium-low heat for 5-7 minutes. They are done when they are brown and smell nutty. Set aside to cool.
Mix applesauce, egg, sugar, oil and extract in a large bowl.
Mix flour, baking soda, cinnamon, and nutmeg together in a smaller bowl.
Pour flour mixture into applesauce mixture.
Stir in raisins and cooled toasted nuts. Pour half of the batter into each greased pan. Bake for 45-55 minutes.
Remove cakes from the oven. Cool for 10 minutes. Remove from pans to finish cooling. For best taste, let cakes cool a few hours before serving.
