Perhaps this is similar to what you are looking for. It sounds like its from the time period and could have been adapted to a spice cake. Good luck!

MY CREAM CHEESE AND APPLESAUCE FROSTING

1 (8 ounce) package cream cheese, softened
1 tablespoon butter, softened
1/2 cup applesauce
1 1/2 cups icing sugar (confectioner's sugar) (or more, as needed)

With the electric mixer, cream the butter into the cream cheese. Add the applesauce. Gradually blend in the icing sugar until a nice creamy consistency is obtained.

Adapted from source: Louise in Montreal to Recipezaar