Preheat oven to 350° and place oven rack in middle position. Grease a 9X13 inch baking dish and line with two strips of parchment paper crossing over each other like a cross.
Peel and core apples. I used three medium sized apples to come up with three cups. Chop into small, bite sized pieces. Set aside.
In a large mixing bowl whisk together the all purpose flour, baking soda, cinnamon, ground ginger, ground nutmeg, and salt. In a separate bowl add vegetable oil, apple sauce, granulated sugar, brown sugar, eggs and vanilla extract. Whisk to combine.
Add the wet ingredients to the dry ingredients. Add the chopped apples and chopped nuts if desired. Use a wooden spoon or spatula to fold ingredients together. Spoon batter into prepared baking dish. Press down and out towards the sides of the pans in an even layer. Bake in preheated oven for 40-45 minutes until toothpick inserted in the center comes out clean and the cake springs back when a finger is pressed into it.
Allow cake to cool completely before frosting.
Cream cheese frosting
In the bowl of a stand mixer with the paddle attachment or using a hand mixer add the softened cream cheese and butter. Mix to combine on medium speed for about 30 seconds. Add the powdered sugar one cup at a time and mix on medium speed, scraping the bottom and sides of the bowl each addition.
Add one to two tablespoons of cream or milk and mix on medium-high speed for about a minute. Frost completely cooled cake and enjoy.
Notes
Store in an airtight container for about two days for maximum freshness.