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Yes, you may substitute equal parts of applesauce for oil, though there may be a slight difference in the texture and taste of the cake. Here's one carrot cake recipe that uses applesauce instead of oil: http://www.foodista.com/recipe/QDY75YYZ/great-carrot-cake
Yes, use unsweetened applesauce in place of oil in carrot cake.
Here's another good carrot cake recipe using applesauce instead of oil: http://www.foodista.com/recipe/7MQW6BFC/tropical-carrot-cake