Sauerkraut Apple Cake

4 eggs
1 cup sugar
1/2 cup packed brown sugar
1 can (14 ounces) sauerkraut, rinsed and drained
1 large tart apple
1 cup vegetable oil
1 cup chopped walnuts
2 cups all-purpose flour
2 teaspoons baking powder
2 teaspoons ground cinnamon
1 teaspoon baking soda
1 teaspoon salt
1/2 teaspoon ground nutmeg

Cream Cheese Frosting:
1 package (8 ounces) cream cheese, softened
2 to 3 tablespoons whipping cream, divided
4-1/2 cups confectioners' sugar
1 tablespoon grated orange peel
1/2 teaspoon ground cinnamon
1 teaspoon vanilla extract
Chopped walnuts, optional

In a large bowl, beat eggs and sugars; set aside. Squeeze sauerkraut until dry; finely chop and add to egg mixture. Peel and finely grate apple; squeeze dry. Stir into egg mixture.

Add oil and walnuts. Combine flour, baking powder, cinnamon, baking soda, salt and nutmeg; stir into egg mixture. Line the bottom of two 8-in. round baking pans with waxed paper; grease and flour paper and sides of pan.

Pour batter into pans. Bake at 350° for 35-40 minutes or until a toothpick inserted near the center comes out clean. Cool in pans for 10 minutes before removing to wire racks to cool completely.

For frosting, beat cream cheese and 2 tablespoons cream in a small mixing bowl. Add sugar; beat until fluffy. Add orange peel, cinnamon and vanilla; mix well.

Add remaining cream if needed. Spread between layers and over entire cake. Garnish with chopped walnuts if desired. Store in the refrigerator. Makes 10-12 servings.