Mix flour, salt, sugar and baking powder together. Make a well in the center of the mixture and add oil, egg, and milk. Mix well. Add vanilla and nutmeg. Grate the apple on the large side of the grater. Stir into batter and refrigerate overnight. Fry in deep oil by heaping spoonfuls. Drain fritters on paper towels. Just before serving, pour lemon sauce over the fritters and sprinkle with powdered sugar.
Mix all ingredients. Cook in heavy saucepan over low heat until thickened and syrupy. Makes 1/2 cup sauce. Leftover sauce may be stored in the refrigerator.