Preheat the oven to 350°F (175°C) and prepare an 8x4-inch loaf pan by coating it with baking spray.

Spread walnut halves on a baking tray and toast in the oven for 8-12 minutes until fragrant and lightly golden. Let cool and chop.

In a large bowl, combine whole wheat flour, baking soda, ground cinnamon, and kosher salt.

In another bowl, whisk together unsweetened applesauce, canola oil, milk, granulated sugar, egg, and vanilla extract until smooth.

Make a well in the dry ingredients and pour in the wet mixture. Stir gently and fold in chopped apples and toasted walnuts.

Transfer the batter to the prepared loaf pan, smoothing the top. Sprinkle sparkling sugar on top.

Bake for 25 minutes, tent with foil, and bake for an additional 20 minutes until a toothpick comes out clean.

Let the bread cool in the pan for 10 minutes before transferring to a wire rack to cool completely.