For pudding: Preheat oven to 375. Peel, core and cut apples into uniform thin slices. Place in buttered 9 X 11 baking pan. Top with cranberries. Mix flour, sugars, baking powder and salt together in small bowl. Blen in beaten egg. Sprinkle this crumbly mixture over apples and cranberries. Dot with butter and sprinkle with cinnamon. Pour water around edges of pudding. Bake 45 to 60 minuters, until the apples are tender when pierced with a fork.
For Caramel Sauce:
Slowly melt 1/2 cup butter and 1 3/4 cup dark brown in a medium sauce pan over medium heat. Whisk in 1/2 cup whipping cream and stir until sugar is disolved and sauce is smooth. Take care not to scorch this sauce.
Serve pudding in glass dessert bowls topped with sauce and either more whipped cream or vanilla or cinnamon ice cream