In a large sauce pan combine 2 cups sugar, 2 cups water, 1/4 tsp. cinnamon and 1/4 tsp. nutmeg. Bring to a boil and simmer for 5 minutes. Add 1/4 C. butter and set aside
In a large bowl combine 2 cups flour, 2 tsp. baking powder, and 1/2 tsp. salt. Using a pastry blender cut in 3/4 C. shortening until pea size. Make a well in the center and add 2/3 C. milk all at once. Knead 10 -12 times and roll into a 10 x 12 inch rectangle.
Combine 1/4 C. of sugar and 1/2 tsp. cinnamon. Sprinkle the apples evenly over the dough. Sprinkle the sugar mixture over the apples. Roll the dough, starting from the long side and pinch the seam to seal. Cut in to 12 one-inch pieces and place in a 13 x 9-inch pan. Pour sauce over the dumplings and bake at 350 F until golden brown, about 30-40 minutes.