Preheat your oven to 350°F (175°C). Grease and flour your loaf pan.
In a mixing bowl, whisk together flour, baking soda, baking powder, cinnamon, nutmeg, and salt. Set aside.
In another bowl, cream the softened butter and granulated sugar together until light and fluffy.
Beat in the eggs, one at a time, mixing well after each addition.
Stir in the applesauce and vanilla extract until fully combined.
Gradually add the dry ingredients to the wet mixture, stirring just until incorporated. Do not overmix.
If using, fold in the chopped nuts.
Pour the batter into the prepared loaf pan, smoothing the top with a spatula.
Bake in the preheated oven for 60 minutes or until a toothpick inserted into the center comes out clean.
Remove from the oven and let the bread cool in the pan for about 10 minutes. Then, transfer it to a cooling rack to cool completely.
Enjoy your Old Fashioned Applesauce Bread sliced, at breakfast, as a snack, or dessert!