In saucepan mix sugar, 1/4 cup flour, 1/4 teaspoons salt. Stir in vinegar and water; cook over low heat until thick; set aside.
Preheat oven to 375°F.
Sift 1 cup flour, baking powder and 3/4 teaspoons salt into medium bowl. Cut in shortening with two knives until the size of peas; add milk; stir until moistened but lumpy. Arrange apples in a well greased 12x8x2-inch dish.
To prepared sauce add cinnamon, nutmeg, lemon juice , vanilla and butter. Pour over apples.
Drop dough on top of apples. Bake 40 minutes or until topping is browned. Serve warm, with cream, sour cream or whipped topping.