Combine the sugar, milk, flour, baking powder, egg, and nutmeg into a smooth batter.
Slice the apples and arrange them on the bottom of a pudding dish. Include other fruit if desired.
Pour the batter over the apples.
Bake for about 40 minutes or until golden brown and the center is set.
For the sauce
Combine ingredients in a small saucepan.
Cook over medium heat until the sugar is dissolved and the sauce has reached your desired consistency (you may wish to reduce the sauce for a thicker consistency).