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Yes, I'd recommend cutting out however much sugar you'd use in 1 1/2 cups of your own homemade applesauce -- and definitely cut the white sugar, not the brown, as Kristen says!

Yes, great call -- you should probably cut back on the sugar. (Depending on how sweet the applesauce is) I'd say cut back to a 1/2 cup white sugar and leave the brown sugar as is. Enjoy that cake -- we love it!