Preheat the oven to 350 degrees F (175 degrees C). Grease and flour a 9 x 13 inch pan.

Sift flour, sugar, baking soda, cinnamon, cloves, allspice, baking powder, and salt together into a large bowl. Mix in applesauce, 1/2 cup butter, and buttermilk; beat with an electric mixer on medium speed until combined, about 2 minutes. Beat in eggs. Fold in walnuts.

Pour batter into the prepared pan. Bake until a toothpick inserted into middle comes out clean, about 50 minutes; let cool.

Mix confectioners' sugar, cream cheese, and vanilla together in a large bowl until smooth; set aside. Melt 1/4 cup butter over medium heat; add pecans and stir continuously until brown. Set aside to cool. Stir pecans into cream cheese frosting; frost cake.