In large bowl combine dry ingredients. Slowly stir in the vanilla, honey and applesauce until combined.
Spread the mixture evenly on a lightly sprayed baking sheet.
Bake for 20 minutes. Add in the cranberries, pressing them into the granola. (If you want the cranberries to cook and be a little firm, which the husband and I do, stir them in after 20 minutes. If you're like my brother, leave the cranberries out and add once the granola has cooked completely so they'll stay moist.) Continue cooking for a total of 30 minutes to an hour - stirring every 15 minutes - or until golden brown. If you stir less often, you'll have more clumps in your granola.
Cool completely and store in an airtight container or divide into individual portions. I divided my batch into 2-ounce servings, 8 servings in all.