Preheat oven to 350 degrees F; grease a 9x5x3-inch loaf pan.
Using an electric mixer on low speed, beat together the granulated sugar, sour cream, eggs, and vanilla until combined; raise speed to medium and beat for 2 minutes.
In a separate bowl, stir together the flour, nutmeg, baking powder, soda, and salt; gradually add to sugar/sour cream mixture on low speed until combined.
By hand, stir in the chopped apple and 1/2 cup of the pecans.
Turn batter into the greased loaf pan; sprinkle with the remaining chopped pecans and press nuts lightly into the batter.
Bake in a 350 degree oven for 55 to 60 minutes or until a wooden toothpick inserted in center comes out clean; if bread is turning too brown, cover top of the bread loosely with foil for the last 10 minutes.
Let cool in the pan on a wire rack for 10 minutes.
While bread is cooling, in a small saucepan over medium-high heat combine the butter and brown sugar and cook, stirring, until mixture comes to a boil.
Reduce heat and simmer gently for 1 minute to make caramel topping.
Remove bread from pan; drizzle top with the caramel and let cool.