Preheat oven to 350°F. Grease an 8 x 8-inch baking pan. To prepare cake, combine flour, allspice, baking powder, baking soda and salt in a small bowl.
In a large bowl with electric mixer at high speed, cream butter and sugars until light and fluffy. Add egg, milk, TABASCO® Sauce, and flour mixture. Beat at medium speed until blended and smooth; stir in chopped apple. Spoon mixture into prepared pan.
Prepare topping: In a small bowl, combine sugar, flour, butter, and cinnamon until well mixed; stir in walnuts. Sprinkle mixture over top of batter in pan. Bake 45 to 50 minutes or until a toothpick inserted in center comes out clean. Cool in pan on wire rack.
Prepare glaze: Combine confectioners' sugar and milk in a small bowl and stir until smooth. Drizzle over cake.
Makes 12 servings.